Bio detection firm raises $14 million in stock deal

Last week PositiveID Corp. announced that it had signed a deal to raise almost $14 million in additional funding through the sale of its stock.

PositiveID, a developer of biological threat detection technology and medical diagnostics, has entered into a series of investment commitments with Ironridge Global Technology and its affiliates. Under the agreements, Ironridge will purchase $13.8 million in PositiveID’s common and preferred stocks in several transactions.

“These transactions are a first-of-their-kind for PositiveID, with the potential to fund our Company through 2012, without additional warrant dilution,” said William J. Caragol, the president of PositiveID. “These financings come at a critical time in our evolution, as we prepare for our iglucose mobile health system for diabetes management to receive regulatory clearance and come to market. We believe that these financings will also enable us to continue the development of additional products including our Easy Check non-invasive breath glucose detection device and GlucoChip glucose-sensing microchip for people with diabetes, as well as commercialize our rapid biological detection technologies.”

“With this capital injection, PositiveID plans to commercialize the iglucose mobile health system and continue product development of their patented bio-sensor technologies,” said Brendan O’Neil, the managing director of Ironridge Global Partners. “According to a report by Global Industry Analysts, Inc., the global market for blood glucose meters and strips is expected to reach $18 billion by 2015, and we believe PositiveID has some disruptive technologies poised to participate in that market.”

The company’s first deal will generate as much as $1.5 million. In the first quarter of 2010, PositiveID lost $15.9 million.

The company’s security segment specializes in the development of airborne bio-threat detection systems.