Biospherics launching health services subsidiary $3 million raised from investment group

December 20, 1997|By Mark Guidera | Mark Guidera,SUN STAFF

Beltsville-based Biospherics, Inc. said yesterday that it has raised $3 million to launch a subsidiary that will provide health care information and guidance to health maintenance organizations, HMO members and self-insured employer groups.

Jeffrey W. Church, Biospherics' vice president and chief financial officer, said the money was raised from a single institutional investment group in a private offering.

The investor, which the company declined to identify, purchased 375,000 units, each comprising two shares of common stock and two warrants. The warrants have exercise prices of $4 and $4.50.

Church said the company anticipates using the money as seed capital until the venture is fully funded early next year.

Initially, the subsidiary is expected to hire up to 40 registered nurses and other trained medical professionals. They will answer phone calls from clients to answer health care questions and offer guidance about proper first steps in the event of medical need.

The company anticipates offering a service that will monitor by phone clients' high-risk members, such as those with serious medical conditions.

Biospherics plans to operate an around-the-clock service, Church said.

Church said the company, which provides information services for federal government agencies and has developed a nonfattening sugar substitute, anticipates that the new subsidiary could grow to a staff of several hundred in a few years.

Pub Date: 12/20/97

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