Israel-based device maker Medigus (TLV:MDGS) touted the successful closure of an $11.1 million private placement funding round, noting backers from home as well as from the U.S.
The funding was split about evenly between investors from Israel and those overseas and the new cash will help pay for general corporate activities, Medigus said.
"We are pleased to announce the signing of these investments with leading institutional investors from Israel and the U.S., including funds that specialize in healthcare," CEO Chris Rowland said in prepared remarks. "These investments reflect the confidence of investors in our strategy and vision. Increasing our capital base will support our strategic plan of expanding the use of our MUSE system, and will enhance our position as a leader in the minimally invasive endosurgical market, with the ultimate goal of enhancing shareholder value."
Israeli backers involved in the new round were led by Migdal Insurance Group, Medigus said. The remaining funding came from U.S institutional investors Sabby Management, Armistice Capital and Senvest. Returning investors include Orbimed, Medigus’ controlling shareholder.
The company expects to start tallying revenue this year for its FDA-cleared MUSE system for treating acid reflux. Medigus in March touted FDA clearance for its next-gen MUSE technology, indicated for minimally invasive treatment of acid reflux disease.