US-based NorthStar Medical Technologies of the USA has closed a $100 million financing with Oberland Capital Management. NorthStar received $75 million at closing with the ability to draw an additional $25 million before 31 December 2020 at the Company’s option.
NorthStar said it would primarily use the proceeds to increase domestic production capacity for molybdenum-99 (Mo-99), complete programmes to improve Mo-99 production efficiency, implement additional enhancements for the RadioGenix System (technetium-99m generator) and continue advancing its R&D activities. The RadioGenix System, which was approved by the US Food and Drug Administration and commercialised in 2018, uses domestic, non-uranium based Mo-99 to supply customers.
Stephen Merrick, NorthStar President and CEO said: “This funding provides NorthStar with the means to continue investment in additional RadioGenix System enhancements and to expand production capacity for non-uranium based Mo-99, including the almost complete 20,000 square foot expansion of our facility in Beloit, Wisconsin. We anticipate that the building expansion will more than double processing capacity for Mo-99 Source Vessels upon completion and FDA approval. We are also working toward final validation of two state-of-the-art fill lines at our Columbia, Missouri facility that, pending expected FDA approval this year, will substantially increase the number of Mo-99 Source Vessels we are able to ship to customers weekly.”
In February, Northstar was one of four companies selected by the US Department of Energy’s National Nuclear Security Administration to begin negotiations for potential new cooperative agreement awards as part of a funding opportunity for the production of molybdenum-99 (Mo-99) without the use of highly enriched uranium (HEU).