ROCHESTER, N.Y., Dec. 5 /PRNewswire-FirstCall/ -- VirtualScopics, Inc. today announced the final closing of a private placement in which the Company raised aggregate gross proceeds of $7 million. In the private placement, investors purchased shares of Series A convertible preferred stock, convertible into 2.8 million shares of the Company’s common stock, and warrants to purchase an additional 1.4 million shares of the Company’s common stock.
Following the closing of the private placement, VirtualScopics has 24,689,071 shares of common stock outstanding, which includes the shares of common stock underlying the Series A convertible preferred stock.
These funds will be used to grow sales and further VirtualScopics’ investment in research and development activities. Over the next 12 months the Company anticipates adding staff in Rochester to support expected growth.
The securities sold by VirtualScopics in this private placement have not been registered under the Securities Act of 1933, and may not be resold in the United States absent registration pursuant to the Securities Act, or an applicable exemption from registration requirements. The Company expects to file a registration statement for these securities by May, 2006.
About VirtualScopics, Inc.
VirtualScopics, Inc. is a provider of advanced medical image analysis services. The company evolved from research first carried out at the University of Rochester Medical Center and School of Engineering. VirtualScopics has created a suite of image analysis tools used in detecting and analyzing specific structures in volumetric medical images, as well as characterizing minute changes in structures over time, providing vital information to support clinical trials and diagnostic applications. The firm’s proprietary software algorithms can assemble hundreds of separate medical images taken during an MRI session into a single, three-dimensional model, bringing a new and previously unobtainable source of data to clinical researchers. For more information about VirtualScopics, visit http://www.virtualscopics.com.
Forward-Looking Statements
The statements contained in this press release that are not purely historical are forward looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to be covered by the safe harbors created thereby. Forward-looking statements deal with the Company’s current plans, intentions, beliefs and expectations. Investors are cautioned that all forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed from time to time in reports filed by the Company with the Securities and Exchange Commission.
CONTACT: Tracy Bagatelle-Black Bagatelle-Black Public Relations 661/263-1842 tracy@bagatelleblack.com
VirtualScopics, Inc.
CONTACT: Tracy Bagatelle-Black of Bagatelle-Black Public Relations forVirtualScopics, Inc., +1-661-263-1842, tracy@bagatelleblack.com
Web site: http://www.virtualscopics.com/