ProUroCare Medical obtains $2.2 million loan

By Angela McDaniels

Seattle, March 2 - ProUroCare Medical Inc. has closed $2.2 million of its pending $6 million senior debt facility, according to a company news release.

The company said this is the first tranche of the financing and that commitments are in place for a significant portion of the remainder.

Proceeds will be used to finance the completion of ProUroCare's prostate imaging system, the ProUroScan, and to fund continued development of a proprietary vision technology for thermal therapy systems to treat prostate related diseases, which is being developed under a joint development agreement with Urologix Inc. and Rensselaer Polytechnic Institute of Troy, N.Y.

The financing comes in the form of a senior secured long-term bank loan provided by Crown Bank of Edina, Minn.

The loan is secured by the assets of the company and guaranteed by a limited number of accredited investors, who received two-year unsecured convertible subordinated debentures for providing their guarantees, according to the release.

"This round of financing will allow ProUroCare to make significant advancements toward its near-term goal of Food and Drug Administration approval of our ProUroScan system," chairman and chief executive officer Maury Taylor said in the release.

ProUroCare Medical is based in Minneapolis, where it develops diagnostic and treatment approaches for male prostate disease and other genito-urinary-related conditions.

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