Monday, October 3, 1994
Uncertainty continued to hover over the cluster of companies
that once huddled under the financial umbrella of New York financier David Blech,
with Bio-Technology General Corp.'s R&D spinoff today waiting to close a
$3.75 million tranche from a Blech-placed funding.
The BTGC situation follows on MicroProbe Corp.'s announcement
last week that Blech would be unable to provide further funds to the company,
jeopardizing MPRO's ability to continue operations.
In the case of BTGC, Blech no longer holds any shares of the
Iselin, N.J., company. But his firm acted as placement agent for the $37.5 million
financing of Bio-Cardia Corp., an R&D vehicle that is paying BTGC to develop
seven products, primarily in the cardiovascular area.
Under the terms of the financing, investors put down $15,000
in cash for each $100,000 unit, with the remainder to be paid in installments
over four years.
Today's the day
A payment of $3.75 million was due on Friday. Matthew Pazaryna,
senior vice president of finance, said BTGC would know today whether there would
be a shortfall in the funds. Although Blech