Mela Sciences proposes to raise $27.3 million

Mela Sciences Inc. (NASDAQ:MELA) plans to raise $27.3 million though the sale of about $15 million in senior secured convertible debentures and 12,300 shares of series B convertible preferred stock at $1,000 in a private placement to institutional investors, including Sabby Management; Broadfin Capital; and Great Point Partners. The five-year debentures bear 4% interest and convert into about 5.8 million shares at $2.57. The preferred stock is initially convertible into about 4.8 million common shares at $2.57. Investors will also receive warrants to purchase about 11.2 million common shares at $2.45. H.C. Wainwright is the placement agent.

Mela's MelaFind is approved in the U.S. and has CE Mark approval in the EU to detect early pigmented cutaneous melanoma. The computer-controlled tool identifies lesions to be considered for biopsy using automatic image analysis and statistical pattern recognition from a hand-held device that emits light of multiple wavelengths. ...