November 8, 2005, Memphis, TN--Luminetx Corporation, which has developed an IR vein-imaging system dubbed the VeinViewer, has secured $11 million in Series A preferred financing. The funds will help the company ramp up production of the VeinViewer to meet demand for the technology from healthcare centers. In addition, some proceeds are expected to support development efforts of other technologies within the Luminetx portfolio. The company also plans to increase its size in office space and number of employees.
Morgan Keegan served as placement agent in the capital-raising effort with Stanford Financial Group as the lead investor. Other investors in the round include Elm Ridge Capital, Capvest Venture Fund, Custer Capital Inc. and its associated funds, and Diomed Holdings, Inc.
Luminetx began operations in early 2005 with an "angel'' round of financing that raised $4 million. Since that time, the company has secured patents, begun production, signed distribution agreements and presented at medical trade shows across the country.
"Morgan Keegan far exceeded our original target in managing this financing effort,'' said Jim Phillips, chairman, chief executive officer and president of Luminetx, who also mentions the investment by Stanford Financial Group.
VeinViewer is a venous imaging system that uses IR light to capture an image of subcutaneous veins, them projects the venous pattern in visible light onto the patient's skin. The product has been attracting interest from experts in phlebology, sclerotherapy, dermatology, phlebotomy, pediatric venipuncture (that is, blood collection and IV-PICC line insertions), interventional radiology, plastic surgery, and other specialty medical segments where venous access is critical to patient comfort and practitioner success. In August, Luminetx signed a $16 million sales agreement providing Diomed Holdings distribution rights to sclerotherapy, phlebectomy, and varicose-vein-treatment markets in the United States and United Kingdom.