BioSig Technologies Issues Big Warrant Position to Mayo Clinic Ventures
Mayo Clinic secured a big potential stock ownership position in Twin Cities-based medical device startup BioSig Technologies in connection with a long-term research collaboration with the Rochester institution and its licensing arm, Mayo Clinic Ventures, newly filed documents show.
BioSig (OTCQB: BSGM), has a close working relationship with Dr. Samuel Asirvatham of Mayo in the development of its PURE electrophysiology (EP) platform, which uses proprietary technology to filter out electromagnetic interference from equipment in a typical EP lab. This is aimed at producing “cleaner” electrocardiograms needed to improve the efficiency and safety of catheter ablation, an increasingly common procedure to treat stubborn cases of complex heart arrhythmias.
Encouraging preclinical tests performed by Asirvatham led to a 2016 collaboration in which the company announced it would expand its funding for his work. Then in March, BioSig doubled down on that relationship, announcing a further 10-year collaboration with Mayo.
The new, expanded relationship builds on the work done through the initial effort, and includes “intellectual property and clinical support” by Mayo Clinic Ventures. The company and the clinic revealed they will jointly patent any new tech coming out of the collaboration.
Information contained in a recent U.S. Securities and Exchange Commission filing, however, revealed another, unannounced element to the deal.
In the “S-1” stock registration filing made on May 22, BioSig reported that it issued three-year warrants for up to 630,000 shares of common stock to Mayo Clinic Ventures at an exercise price of $1.50 per share. BioSig board chairman and largest shareholder Ken Londoner confirmed to TCB that the warrants were issued in connection with the “know-how licensing agreement” it struck with Mayo three months ago.
Were Mayo Ventures to exercise all of those warrants for $945,000, it would become BioSig’s seventh-largest shareholder, based on the information provided in the company’s latest annual proxy statement issued in October.
The pre-revenue company’s share price was hovering around $1.40 last week at the time of this writing.
Londoner, a veteran medtech consultant with New York-based Endicott Management Partners, said the board’s decision to give Mayo the option of a future ownership position reflected both parties’ confidence the relationship will be a productive one.
“This is a long-term collaboration, and we’re working not just to bring our current (PURE EP) technology to market, but also to produce new technology and (intellectual property) over time, working with their lead doctors in our field,” he said.
BioSig is aiming for 510(k) marketing clearance for the PURE EP system by this year, followed by marketing and commercialization. In its partnership with Asirvatham, it tapped into a level of credibility that could spark further investor interest in the eight-year-old firm.
As one of the country’ top practitioners of catheter ablation therapy to treat complex heart arrhythmias, he is in a prime position to test the system, which it claims is capable of filtering out electromagnetic interference in the EP lab, thus producing much clearer real-time electrocardiogram signals needed for surgeons to accurately identify and target defective heart tissue for ablation procedures.
In addition to his roles as a professor in Mayo’s departments of internal medicine and pediatrics, Asirvatham is the program director of its Clinical Cardiac Electrophysiology Fellowship (electrophysiology is the study of the electric activity of the heart) and director of strategic collaboration for its Center for Innovation.