Corindus Vascular Robotics has entered into a Securities Purchase Agreement pursuant to which it will issue and sell an aggregate of 67,941,346 shares of its common stock in a private placement at a purchase price of US$0.6616 per share, resulting in aggregate gross proceeds to the company of approximately US$45,000,000. The closing of the transaction, which is subject to customary closing conditions, is expected to occur on or before March 15, 2017.
According to a press release, Corindus intends to use the proceeds of the offering for general corporate purposes including global commercialisation of its recently US Food and Drug Administration (FDA)-cleared next-generation Corpath GRX system to capitalise on the worldwide vascular robotics market. The company believes this offering will enable it to fund ongoing growth and will enhance the company’s ability to optimise the potential of its new products and capabilities.
The financing round involved a syndicate of top tier healthcare investors. New investors include Boston Scientific, BioStar Ventures, Consonance Capital and Hudson Executive Capital. Existing investors, HealthCor Partners Management, Corindus’ largest shareholder and Royal Philips also participated in the financing.
Mark Toland, president and chief executive officer of Corindus, says, “The additional capital will allow us to continue the momentum created by strong interest in the recent launch of our next-generation Corpath GRX system and our expansion into Japan with an exclusive distribution agreement with MC Healthcare, a subsidiary of Mitsubishi.”