NorthStar Medical Closes $100 Million Financing with Oberland Capital to Expand Domestic Mo-99 Radioisotope Production Capacity and Implement RadioGenix® System Enhancements
April 23, 2019
NorthStar Medical Technologies, LLC – BELOIT, Wis. – NorthStar Medical Technologies, LLC, (“NorthStar” or the “Company”) a global innovator in the production and distribution of radioisotopes used for medical imaging and therapy, today announced the closing of a $100 million secured financing with funds managed by Oberland Capital Management LLC (“Oberland Capital”). NorthStar received $75 million at closing with the ability to draw an additional $25 million prior to December 31, 2020 at the Company’s option. NorthStar will primarily use proceeds from the financing to increase domestic production capacity for the medical radioisotope molybdenum-99 (Mo-99), complete programs to improve the efficiency of the production of Mo-99, implement additional enhancements for the RadioGenix System (technetium Tc 99m generator) and continue to advance its R&D activities. Approved by the FDA and commercialized in 2018, the RadioGenix System uses reliable, domestic, non-uranium based Mo-99 to supply customers with the critical diagnostic imaging radioisotope technetium-99m (Tc-99m).
Leo Law Firm, LLC served as counsel for NorthStar’s controlling shareholder. Todd W. Burkett and Karl W. Leo represented Hendricks Holding Company, Inc. and its parent in the transaction.
About Oberland Capital
Oberland Capital, a private investment firm with over $1.2 billion in capital commitments since inception, is focused exclusively on investing in the global healthcare industry and specializes in flexible investment structures customized to meet the specific capital requirements and strategic objectives of transaction partners.
About NorthStar Medical Technologies, LLC (NorthStar)
NorthStar Medical Radioisotopes is a global innovator in the production and distribution of radioisotopes used for medical imaging and therapy. Founded in 2006 and based in Beloit, Wisconsin, NorthStar Medical Technologies is the parent organization of several wholly-owned subsidiaries, including NorthStar Medical Radioisotopes, LLC. NorthStar Medical Radioisotopes is a nuclear medicine technology company committed to providing the United States with reliable and environmentally friendly radioisotope supply solutions to meet the needs of patients and to advance clinical research. The Company’s first product is the RadioGenix® System, an innovative and flexible platform technology initially approved by the U.S. Food and Drug Administration in February 2018 for the processing of non-uranium/non-highly enriched uranium based molybdenum-99 (Mo-99), the parent isotope of technetium-99m (Tc-99m), which is currently the most widely used diagnostic radioisotope for medical purposes. NorthStar’s proprietary and patented technologies include non-uranium based molybdenum-99 domestic production methods, patented separation chemistry systems, patented sterilization systems and a technology platform that potentially allows expanded product offerings to provide solutions in both the diagnostic and therapeutic markets. For more information, visit: www.northstarnm.com.