MAY 7--Cedara Software Corp. (Toronto, Canada; www.cedara.com), a developer of medical imaging software, has completed a private placement of 580,461 common shares of stock to Analogic Corporation (Peabody, MA; www.analogic.com) at approximately C$2.35 per share for net proceeds of approximately C$1.4 million at the current exchange rate. This issuance will bring Analogic's interest in Cedara back to approximately 19% on an after-investment basis. Analogic is a custom designer and manufacturer of advanced systems and subsystems sold to major health and security original equipment manufacturers, comprising a customer base that largely overlaps Cedara's.
Cedara intends to use proceeds from this equity investment to strengthen its working capital position. As part of Analogic's original investment, Cedara agreed to grant Analogic pre-emptive rights, whereby Analogic has the right to maintain its 19% equity interest in the event of certain issuances by Cedara of its securities.