Monteris Announces $30 Million Equity Financing
Monteris Medical Corporation (Monteris), a pioneer developer of minimally invasive laser systems for the ablation of pathologic brain lesions such as primary and metastatic tumors, announced that the company has secured an equity financing totalling approximately $30 million. Led by new investor Birchview Capital of Burlington, VT, the financing will support an expansion of both commercial and clinical programs for the Monteris NeuroBlate® robotic neurosurgical system. Also participating in the Series B preferred financing were new investor, The Vertical Group of Basking Ridge, NJ, and current Monteris investor, BDC Capital Healthcare Fund.
John Schellhorn, President and Chief Executive Officer of Monteris, commented: "We believe that an investment of this calibre validates both the clinical and commercial potential of the Monteris NeuroBlate® system. This investment will provide Monteris with the resources needed to rapidly expand our current customer base of approximately 25 leading neurosurgery centers, while also continuing to support the clinical programs that are necessary to provide further evidence of the NeuroBlate® system's value to our neurosurgical customers and their patients."
The Monteris Series B financing includes two tranches of preferred equity, the first of which closed on November 6th and the second of which will close on/or before March 31, 2015. The two tranches will total slightly under $30 million. In addition to the Series B preferred stock, Monteris has issued warrants to the Series B investor group that, if exercised, would generate additional capital for the company in the amount of approximately $10.6 million. In conjunction with this financing, Matthew Strobeck, Ph.D., Partner at Birchview Capital, and Richard Emmitt, General Partner of The Vertical Group, will join the Monteris Board of Directors.
Dr. Matthew Strobeck, Partner at Birchview Capital, also commented, "We are excited to have the opportunity to be involved with a company that is striving to address the significant needs of neurosurgeons and their patients with less invasive technology." He added, "the market for neurosurgical devices that target incurable and difficult to treat brain lesions is significant and we are hopeful the company's technology will become standard of care for many of these patients."
Greg Barrett, Monteris Chairman of the Board, added, "We are pleased to welcome Dr. Strobeck and Mr. Emmitt to the Monteris Board of Directors. Both bring significant experience in guiding fast-growing medical companies with innovative technologies that can help physician customers to improve the lives of their patients. I would also like to take this opportunity to thank Kevin McGarry and Patrick Morand for their many years of dedicated service to the company's Board."
"As an early investor in Monteris, we are very pleased to welcome Birchview Capital and The Vertical Group," stated Gary Bantle with the BDC Capital Healthcare Fund. "Monteris has a phenomenal platform and team and this new infusion of capital will allow the company to accelerate the adoption of the clinically important NeuroBlate® system."
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