Corindus Vascular Robotics inked a private placement deal worth $25 million through the offering of newly-designated Series A convertible preferred stock, with funds slated to support global commercialization of its CorPath GRX robotic surgical system.
The Waltham, Mass.-based company will issue shares of Series A convertible preferred stock convertible into 20 million shares of common stock at $1.25 per share alongside warrants to purchase an aggregate of 8.8 million shares of common stock at $1.40 per share.
Stocks are being issued to an existing group of investors, including Hudson Executive Capital and BioStar Ventures, alongside new investors, Corindus said. The deal is expected to close on March 16.
Corindus said it expects to net proceeds of approximately $24.5 million, which it intends to use for general corporate purposes and global commercialization of the CorPath GRX system. As part of the deal, Douglas Braunstein has been named to the company’s board of directors.
“We are very pleased with this transaction and to have these leading firms invest in Corindus. The guidance and leadership from Doug’s addition to our board of directors will bring significant value to Corindus as we continue to ramp up our commercial efforts with CorPath GRX,” president & CEO Mark Toland said in a press release.
FDA Clears Software for Corindus CorPath GRX Surgical Robot
Earlier in March 2018, Corindus received 510(k) clearance from the U.S. Food and Drug Administration (FDA) for the first automated robotic movement designed for its CorPath GRX platform.
Called “Rotate on Retract” (RoR), the proprietary software feature is the first automated robotic movement in the technIQ Series for the CorPath GRX platform. It allows the operator to quickly navigate to a targeted lesion by automatically rotating the guidewire upon joystick retraction.