Profound Medical in $10-million bought deal, Q2 revenue up 62%

iStock-182146447_LRG.jpg

Profound Medical (OTCQB:PRFMF; TSXV:PRN) reported second quarter revenue of $957,139, compared to nil in the year ago quarter, but up 62% from $591,517 in the first quarter of 2017.

Latest revenue consisted of $919,845 from the sale of products and $37,297 from installation and training services.

“With the continued success in the pilot commercial launch of the TULSA-PRO system in Europe, and the recent acquisition of Philips’ Sonalleve business, Profound has begun to make the leap from product to platform, offering real-time MR-guidance as the imaging platform and ultrasound as the energy source for the delivery of non-invasive ablative technology to clinicians,” Arun Menawat, CEO, said in a statement.

“The integration of Sonalleve, including the transfer of staff and know how, began almost immediately after we reached a definitive agreement with Philips, and, thanks to the hard work and dedication of everyone involved, that has allowed for a very smooth transition thus far,” he added.

Separately, Profound announced that a syndicate of underwriters led by Echelon Wealth Partners, and including CIBC Capital Markets, have agreed to purchase, on a bought deal basis, 10 million units of the company at a price of $1 each for gross proceeds of $10-million.

Each unit will consist of one common share of Profound and one-half of a warrant, with each whole warrant entitling the holder to acquire an additional common share at a price of $1.40 for 36 months after closing, subject to accelerated expiry provisions.

Profound also agreed to grant underwriters an over-allotment option to purchase up to an additional 1,500,000 units at the same price for 30 days after closing. If the over-allotment is exercised in full, total proceeds will be about $11.5-million.

Net proceeds will be used to advance Profound’s clinical trials of its TULSA-PRO and Sonalleve devices, and for working capital and general corporate purposes.