Cambridge Heart raises $1.8M

Cardiac device developer Cambridge Heart has reportedly raised approximately $1.8 million in total capital from private placement, after a financial review of its Series D convertible preferred stock

Financing was provided by existing shareholders, including institutional and individual investors and three board of directors, who each provided almost 20 percent of the total capital, according to the Tewksbury, Mass.-based company.

Cambridge Heart said the accumulated assets will be used to advance its microvolt T-Wave alternans technology, a measurement used to help indicate the presence of a type of cellular metabolic activity that frequently leads to ventricular tachyarrhythmias.

Under the financial terms, the firm issued and sold 1,852 shares of Series D preferred stock at a purchase price of $1,000 per share to its investors.

According to the company, each Series D preferred stock was convertible into shares of the company’s common stock at a price of $.082 per common share. This figure represents a 15 percent premium to the 20-day trailing average of its closing common stock price as of Dec. 21, 2009. The total number of common stock shares issuable upon the conversion of preferred stock is about 22.58 million.

No finder’s fees or commissions were paid in connection with the financing, according to the company.

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