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SNWV: $2MM Financing, CEO Hired

Zacks Equity Research

By Brian Marckx, CFA



This morning (2/26/2013) SANUWAVE (OTC BB:SNWV) announced that they exceeded their goal of raising $1.25 million in bridge financing and were instead able to raise $2 million as a result of strong investor interest.  The $2 million comes from the sale of 18% senior secured convertible promissory notes which will convert to common with a subsequent larger funding.  This $2 million infusion comes on the heels of a $1 million financing agreement that was penned in December. 

As we've noted in the past, SNWV has managed their cash well and kept burn to a minimum.  As of the end of Q3 (9/30/2012) SNWV had $361k in cash and equivalents, which does not include the aforementioned financings. 

CEO Comes With Experience and Strong Background

The second of the double shot of positive news this morning was that SNWV hired a CEO who comes with experience and a strong background in the healthcare space and on Wall Street.  Per SNWV's press release describing Joseph Chiarelli's background:

Since 2011, Joseph Chiarelli has been responsible for financial advisory, business development, and a healthcare hedge fund at Auriga Capital Management. Mr. Chiarelli was the Chairman of Clarent Hospital Management Corp delivering returns well above shareholder expectations. His success at achieving results is also demonstrated by his time with Wall Street Access and Oppenheimer & Company where, as the head of the healthcare research teams, he developed a team approach to fundamental and market-driven analysis of the healthcare industry, creating revenue streams and stock selection performance that far exceeded prior results and market indices' returns.

Mr. Chiarelli developed much of his healthcare industry knowledge while at JPMorgan Chase & Co. (JPM) where he was responsible for three healthcare sectors of the equity markets as the Senior Investment Research Analyst. Mr. Chiarelli is an Institutional Investor All Star for both equity and high yield research with his work highly acclaimed for the quality, depth, and thoroughness of its fundamental research and for his knowledge of the industry sectors under coverage.

Prior to his work in healthcare, Mr. Chiarelli served JPM as the Chief Financial Officer of two large independent subsidiaries, J.P. Morgan Delaware and Morgan Securities Services Corporation and was a manager with Coopers & Lybrand (now PriceWaterhouseCoopers). He is a Colonel in the USAFR and a member of the board of directors of a private healthcare device company.

"Working the majority of my professional career in the healthcare industry, I have seen many emerging companies succeed. The opportunity to work with a highly qualified team of professionals and an unbelievable portfolio of products and product candidates is very exciting. I look forward to helping continue the development of innovative products and advancing the commercialization of SANUWAVE's PACE technology in many verticals," stated Mr. Chiarelli.

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