TEMECULA, Calif., Aug. 27 /PRNewswire-FirstCall/ -- Patient Safety Technologies, Inc. (PST) (BULLETIN BOARD: PSTX) announced today that it has closed on $2.325 million in equity financing in a first closing of a private placement. The proceeds will go towards further enhancing sales and marketing at its SurgiCount Medical subsidiary. Investors in the first closing of the private placement purchased 1,860,000 shares of the Company's common stock at a price of $1.25 per share and received a 5-year warrant to purchase an additional 1,162,500 shares of the Company's common stock at an exercise price of $1.40 per share. The investors paid $2.325 million in cash. Pursuant to the terms of the private placement, the Company may sell up to an aggregate of $2.5 million worth of common stock and warrants no later than August 31, 2008. PST has agreed to register for resale the shares of common stock sold in the offering.
"Consistent with our previously disclosed growth plans, this private placement provides the Company with the extra capital necessary to expand our sales force to service and develop new and emerging markets," said Bill Adams, CEO of Patient Safety Technologies, "The Company continues to add new healthcare facilities to its growing list of customers and the need for a physical presence in these areas is necessary to keep up with the demand."
This announcement is neither an offer to sell nor a solicitation of an offer to buy any of these securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful.
The securities have not been registered under the Securities Act of 1933, as amended (the "Securities Act"), or any state securities laws, and unless so registered may not be offered or sold in the United States except pursuant to an exemption from the registration requirements o the Securities Act and applicable state laws.
About SurgiCount Medical, Inc.
SurgiCount Medical, Inc., a division of Patient Safety Technologies, Inc. (BULLETIN BOARD: PSTX) , manufactures the SurgiCount Safety-Sponge(TM) System, a patented FDA 510K approved turn key solution to retained surgical sponges. The system is comprised of surgical sponges and towels affixed with an inseparable two-dimensional data matrix bar code and a SurgiCounter scanner to record each sponge before and after an operation. The SurgiCount Safety-Sponge(TM) System is also the only retained sponge prevention system to offer complete sponge inventory tracking, reporting features sand integration with a medical facility's IT system. For more information, contact SurgiCount at (951) 587-6201, or visit http://www.surgicountmedical.com/
Forward-Looking Statements
This press release contains certain forward-looking statements. These forward-looking statements can generally be identified as such because the context of the statement will include words such as Patient Safety Technologies assumes, intends, plans, expects, should, believes or words of similar import. Stockholders, potential investors and other readers are cautioned that these forward-looking statements are predictions based only on current information and expectation that are inherently subject to risks and uncertainties that could cause future events or results to differ materially from those set forth or implied by the forward-looking statements. Certain of those risks and uncertainties are discussed in our filings with the Securities and Exchange Commission, including our annual report on Form 10-K and quarterly reports on Form 10-Q. These forward-looking statements are only made as of the date of this press release and Patient Safety Technologies does not undertake any obligation to publicly update such forward-looking statement to reflect subsequent events or circumstances.
