Adagio Medical announced today that it entered into a securities purchase agreement worth up to $50 million in proceeds.
The company said certain accredited investors agreed to purchase shares of its common stock or pre-funded warrants and accompanying common warrants. It expects the agreement to result in approximately $19 million in upfront proceeds. Additional proceeds could reach up to approximately $31 million if investors exercise the warrants in full for cash.
Existing investor Perceptive Advisors has an affiliate leading the private placement. Participation also comes from certain healthcare-dedicated and institutional investors.
Laguna Hills, California-based Adagio Medical plans to use the proceeds from the offering for working capital and general corporate purposes. Those include the advancement of its clinical and product development activities.
Adagio Medical develops cryoablation technology for treating cardiovascular diseases. It built its vCLAS cryoablation catheter on its proprietary ultra-low cryoablation technology (ULCT). It aims to address the challenges of ventricular tachycardia (VT) ablations, comprising part of the Adagio VT cryoablation system. The system’s features make it time- and effort-efficient across the range of purely endocardial ablation strategies in patients with multiple VT etiologies.
vCLAS picked up FDA breakthrough device designation earlier this year. Prior to that, the company also executed a restructuring effort to prioritize FULCRUM-VT. With layoffs included, the restructuring also centered focus on a new product design optimization program.
A couple of weeks ago, Adagio completed enrollment for its FULCRUM-VT pivotal FDA IDE study.
