Medifocus Inc.

Medifocus Inc.

June 08, 2012 21:48 ET

Medifocus Inc. Announces Closing of Private Placement

TORONTO, ONTARIO--(Marketwire - June 8, 2012) -


Medifocus Inc. (TSX VENTURE:MFS)(OTCQX:MDFZF) (Medifocus or the Company) announces that it has completed the first tranche of its previously announced private placement. The Company issued 18,367,253 units (each a Unit) at a price of $0.15 per Unit for gross proceeds of $2,755,088. Each Unit is comprised of one common share (a Common Share) and one Series B Common Share purchase warrant (a Warrant). Each Warrant entitles the holder to purchase one additional Common Share at a price of $0.20 for a period of 24 months following the completion of the Offering. If, at any time prior to April 26, 2014, the daily volume weighted average trading price of the Common Shares on the TSX Venture Exchange exceeds $0.75 for at least 10 consecutive trading days, Medifocus may, within 30 days of such occurrence, give an expiry acceleration notice to the holders of Warrants and, if it does so, the Warrants will, unless exercised, expire on the 30th day after the expiry acceleration notice is given. The Common Shares and Warrants issued in connection with the private placement, and any Common Shares issued upon the exercise of the Warrants, will have a hold period in Canada until October 8, 2012.

The Company expects to close on a second tranche of the private placement upon receiving final TSX Venture Exchange Approval. The second tranche is expected to consist of 22,200,000 Units for proceeds of $3,330,000.

The proceeds of this offering will be primarily used for working capital and to continue its pivotal phase III clinical trials using Medifocus Microfocus APA 1000 System for the treatment of breast cancer (including all related professional expenses).

Medifocus owns a patented microwave focusing technology platform (the Adaptive Phased Array ("APA") technology), which can precisely target and control microwave energy to cause heating in cancerous tumors anywhere in the body reliably and repeatedly. The ability to target tumors with a precision controlled dose of heat can be used to destroy tumors at higher temperatures, to treat tumors in combination with chemotherapy and/or radiation at moderate temperatures for increased effectiveness and reduced toxicity and to trigger the targeted release of therapeutic drugs and genes at tumor sites at lower temperatures. While the core technology has been licensed from the Massachusetts Institute of Technology, Medifocus has further refined the precision of the microwave focusing and control ability and developed a commercial system dedicated exclusively for the treatment of Breast Cancer. Please visit for more details.

Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) has in any way passed upon the merits of the proposed transactions and neither of the foregoing entities has approved or disapproved of the contents of this press release.

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