SHINE Medical Technologies raises $2.4 million for operating costs
SHINE Medical Technologies announced Wednesday it closed on a $2.4 million fundraising effort as it works toward medical isotope production in Janesville.
The money will cover the company's operating costs as it works to get a construction permit from the Nuclear Regulatory Commission. The permit is necessary before construction can start on the manufacturing plant on Janesville's south side, said Katrina Pitas, vice president of business development.
“We don't know exactly when we will receive that construction permit, but we're expecting it sometime in 2015,” she said. “This money will help us cover operating costs into 2015.”
Company officials were happy to exceed their $2 million fundraising goal, she said. Mulligan & Galt was the lead investor, along with Wisconsin Investment Partners and individuals across Wisconsin or with ties to the state, she said.
In addition to seeking the permit, the funding will allow SHINE to continue to secure comprehensive financing for the project. The estimated construction cost is about $100 million, she said.
“One of our top priorities now is getting the money we need to build the facility,” she said.
That likely will involve an equity component, some form of debt financing and multiple large players, she said, but she could not go into details.
The National Nuclear Security Administration is matching each dollar SHINE raises up to $25 million.
In February 2012, the Janesville City Council approved a $5 million development agreement that's contingent on the company meeting several benchmarks, including federal licensing and the creation of 125 high-paying jobs in Janesville. The package also includes a city guarantee on a $4 million loan from private investors.
The plant would use low-enriched uranium in a series of eight accelerators to produce molybdenum-99, a medical isotope used in more than 30 kinds of diagnostic imaging procedures and more than 40 million medical imaging tests each year.
The company wants to fill a void expected when two other nuclear reactors that use highly enriched uranium to produce isotopes are taken out of service in 2016 and 2020. The plants in Canada and the Netherlands are the world's leading isotope suppliers.