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Lifeline Scientific (LSI)

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Monday 07 January, 2008

Lifeline Scientific

Completion of IPO

Lifeline Scientific, Inc
07 January 2008

 NOT FOR RELEASE OR DISTRIBUTION OR PUBLICATION IN WHOLE OR PART IN OR INTO THE
UNITED STATES, CANADA, JAPAN, THE REPUBLIC OF SOUTH AFRICA, OR AUSTRALIA OR ANY
 OTHER JURISDICTION WHERE SUCH RELEASE OR DISTRIBUTION OR PUBLICATION WOULD BE
                                    UNLAWFUL



            Lifeline Scientific, Inc. ('Lifeline' or 'the Company')


For immediate release                                             7 January 2008



This announcement does not constitute or form part of an offer, or any
solicitation of an offer, for securities and any purchase of or application for
shares in the placing should only be made on the basis of information contained
in the formal admission document issued in connection with the placing and the
admission to AIM.



           Lifeline Scientific announces successful completion of IPO


                            Trading commences today


          Addressing the global problem of human donor organ shortage



Lifeline Scientific, a medical technology company primarily focused on
commercialising its LifePort(R) Kidney Transporter, a product designed to
address the global challenge of human donor organ shortages, announces the
successful completion of its flotation on the AIM Market of the London Stock
Exchange.  The Company raised a total of £5.4 million from the placing of new
common shares with institutional and other investors at a price of 150p per
share.


The Company will have a market capitalisation of approximately £23.58 million
upon admission and its common shares are expected to commence trading at 08:00
today under the ticker symbol 'LSI'. Seymour Pierce Limited acted as nominated
adviser and broker to the Company. In conjunction with Seymour Pierce Limited,
ProSeed Capital Holdings CVA advised the Company on the financing.


Introduction


Lifeline Scientific is a medical technology company that is primarily focused on
the commercial launch of its LifePort(R) Kidney Transporter.  LifePort(R),
marketed through the Company's Organ Recovery Systems business unit, is FDA
cleared/ CE marked, clinically validated and has generated over $9 million in
revenues during its pilot introduction to the marketplace.


In comparison with static cold storage, the current standard method for kidney
preservation which employs a cooler or cardboard box filled with ice, recent
clinical study findings suggest that LifePort(R) preserved kidneys offered
statistically significant advantages. Study findings demonstrated improved
patient outcomes including:

  • Reduced risk of Delayed Graft Function (DGF);

  • Reduced duration of DGF and Primary Non Function; and

  • Improved graft survival at 6 months post-transplant.


LifePort(R) has also been shown to improve the utilization of donated kidneys
and increase the organ recovery rate. These benefits along with data reported
from other machine preservation studies suggest that reduced overall costs of
kidney transplantation may also be achieved with the LifePort(R).


LifePort(R) is thus a new tool that can help increase the number of kidneys
being made available for transplant while improving the quality of those organs
and potentially lowering transplant related healthcare costs.


LifePort(R) products for heart, liver, lung and pancreas are also in late stage
pre-clinical development.


Lifeline Scientific also operates two subsidiary businesses that leverage the
LifePort(R) technology platform addressing unmet needs in the fields of drug
development and cell & tissue transplantation.


Details of the Placing


  • The Placing comprised a total of 3,675,074 Placing Shares.

  • The Company raised gross proceeds of £5.4 million from the Placing, which
    will principally be used to fund the full commercial launch and development
    of LifePort(R) Kidney Transporter.

  • The enlarged issued share capital at admission will be 15,721,340 common
    shares. In addition, on Admission the Company will have a number of warrants
    and options in existence which carry the right to the issue of a further
    5,749,044 Common Shares in the Company.  The Company is at an early stage in
    its development and should additional funding become available the Company
    will look to carry out further equity fundraisings at any time following
    Admission.

  • The directors have agreed not to dispose of any of their common shares in
    the Company prior to the anniversary of admission and, for a period of 12
    months following such anniversary, any disposal will be made through Seymour
    Pierce to preserve an orderly market in the Company's shares.  In addition,
    certain key shareholders have agreed not to dispose of any of their common
    shares in the Company for a period of six months following Admission.

  • Admission and commencement of trading on the London Stock Exchange's AIM
    market is expected to take place at 08:00 today under the ticker symbol 
    'LSI'.  The Company is expected to be listed in the Healthcare sector.


David Kravitz, Chief Executive of Lifeline, said:


'Lifeline Scientific's LifePort(R) Kidney Transporter has been well received in
its pilot introduction phase in main transplant centres throughout the world.
Initial indications suggest that LifePort(R) has helped increase the number of
transplantable donor kidneys and improved clinical outcomes.


'We are delighted to have successfully completed our IPO and the money raised
will enable us to fund the commercial launch of the product in the world's key
markets.'



Enquiries:


Lifeline Scientific, Inc.
David Kravitz, CEO

Nominated Advisor and Broker
Seymour Pierce                                               +44 (0)20 7107 8000
Mark Percy / Huaizheng Peng / Sarah Jacobs

Investor and Media Communications
Financial Dynamics                                           +44 (0)20 7831 3113
Ben Brewerton / John Dineen

Advisors to the Company
ProSeed Capital Holdings CVA                                 +972 (3) 528 0875
Dror Ben- Asher





The Product


The lead product, LifePort(R) Kidney Transporter, is a portable machine
perfusion device for kidneys. It is FDA approved, CE marked, clinically
validated and revenue-generating. The device may potentially replace or augment
for most uses the current standard method for kidney preservation,  and
transport - a cooler or cardboard box filled with ice.  Machine-perfusion has
been clinically demonstrated to help increase the number of available donor
organs by enabling more effective access to different categories of donor
(non-heartbeating and expanded criteria donors), improve clinical outcomes and
organ utilisation, and potentially reduce overall healthcare cost.


LifePort(R) Kidney Transporter is already well accepted in the market place.  It
is currently in pilot introduction phase with 75 key transplant centres
worldwide and has generated revenues of approximately $9m during this period.



Market Opportunity


There is a significant unmet need for donor kidneys.  In 2006, there were 17,000
kidney transplants in the US, with a further 72,000 patients on the waiting
list.  The average wait for a kidney transplant in the US is 3.6 years.
Annually, thousands of patients die waiting for a donor kidney.  The dramatic
supply/demand imbalance is similar for Europe and worldwide.



Further Products


In collaboration with key transplant centres in the US and Europe, other
LifePort(R) systems are in development stage for the preservation and transport
of the heart, lung, liver and pancreas.


Use of Proceeds and Growth Strategy


Marketed through the Company's Organ Recovery Systems division, the formal
commercial launch of LifePort(R) is due shortly.  Growth will come from
increasing the installed base of the equipment, higher utilisation of the
equipment and the components required for each individual perfusion, and
expanding the customer base geographically.  The business model suggests
recurring income mostly through consumable sales.


The IPO proceeds will principally be used to fund the commercial launch of
LifePort(R) Kidney Transporter.




                      This information is provided by RNS
            The company news service from the London Stock Exchange