iSonea accelerates commercialisation of asthma devices in U.S., in negotiations with partners

Monday, November 28, 2011 by Angela Kean

iSonea is currently in negotiations with major strategic partners to accelerate commercialisation and cash flows of its next generation asthma products in the U.S. A measure of confidence in the company’s plan is that $3.7 million of its $4.3 million rights issue will be underwritten.

iSonea (ASX: ISN) is focused on securing a major strategic partner to launch, distribute and sell its Acoustic Respiratory Monitoring® products in the U.S. and other key asthma markets as it ramps up towards commercialisation.

The company is in negotiations with several major strategic partner candidates for development and distribution of its products.

Another core objective of iSonea’s commercialisation plan is developing over-the-counter asthma monitoring devices with mobile health capabilities, using iSonea core technology coupled with internet and social media marketing campaigns.

This will lower production costs and should increase sales and distribution capacity.

iSonea also plans to conduct short-duration clinical studies in the U.S. to enable insurance reimbursement for iSonea products.

Acoustic Respiratory Monitoring®

iSonea is focused on supplying innovative, non-invasive Acoustic Respiratory Monitoring® devices and software for disease management of asthma and related pulmonary disorders.

Specific devices have been designed for intermittent or continuous monitoring applications in clinical settings, such as the physician’s office or the hospital intensive care unit, and for consumer use at home, school, playground or work.

The Acoustic Respiratory Monitoring® devices have been cleared for use by the U.S. Food and Drug Administration, the Australian Therapeutic Goods Administration and the European Union CE.

Rights Issue

iSonea’s $4.3 million renounceable rights issue will comprise three new shares for every four held at A$0.005, with one free attaching option for every four new shares accepted, priced at A$0.007 with an expiry of 30 June 2014.

Importantly, the company has received some strong support from the investment community with $3.7 million of the issue to be underwritten.

iSonea will allocate the funding injection to accelerate development and integration of company's products with strategic partners, with the funds also expected to replace the existing convertible note equity draw-down facility negotiated with Bergen Global Opportunity Fund, LP.

U.S. listing for iSonea

Earlier in the month iSonea made another significant step in the transformation of the company with a move to list in the U.S. using American Depositary Receipts, providing a direct market for U.S. investors to gain exposure to iSonea's unique technology.

The company remains on schedule to complete its U.S. listing by the end of 2011.

No investment advice

The Company is a publisher and is not registered with or authorised by the Financial Services Authority (FSA). You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.