Jones Lang LaSalle


Bioject Medical to Shutter Jersey Office

Seeking some $1.8 million a year in cost reductions, Bioject Medical Technologies (Nasdaq: BJCT) announced today it will close its New Jersey administrative office in Bedminster. The firm is also cutting headcount, and research and development at its Portland, Oregon facility.
The company, which develops needle-free drug delivery systems, also says it's getting an injection of $4.5 million from Sanders Morris Harris (SMH), a private equity fund manager, and $1.25 million debt financing from Partners For Growth.

Under the agreements, Bioject has received a $1.5 million initial bridge loan, made up of 10% convertible notes from SMH. The securities are due April 1, 2007, and are secured by a second lien on all of the assets of Bioject and its subsidiary.

The net proceeds from the loan will be used as working capital to fund operations until the company completes a planned closing of Series E preferred-stock financing.

In connection to the transaction, Jerald S. Cobbs, managing director of SMH, was appointed to Bioject's board of directors. Bioject shares dropped $0.06 to $1.50 in afternoon trading. - Martin C. Daks