Wound dressing device maker Alliqua closed a $3 million equity financing round, largely backed by an insider group of board members and executives.
Alliqua drummed up the cash over the course of 3 months through sale of common stock, according to a company statement. Accredited investors paid 81¢ per share for equity, coupled with a warrant to purchase an additional share at 97¢ apiece.
The 1st million sold in April and May and the other $2 million, raised in late June, came from company affiliates. The largest investment outside the company came from Summer Street Research Partners.
The New York, N.Y.-based company plans to use part of the new fund for its SilverSeal dressing, a product that Alliqua said can reduce complications and scarring after surgery. Alliqua touted a recent study showing improved healing time for ankle surgery patients treated with SilverSeal.
The remaining funds will go to the company’s other wound dressing product and its transdermal drug delivery platform.
"I believe that the substantial financial commitment on the part of the executives and board members who contributed to this financing round is indicative of our commitment to the success of Alliqua as well as our belief in the vast commercial potential we all believe exists in our technology," said CEO David Johnson in prepared remarks.
At DeviceTalks Boston, Tyler Shultz will give attendees an inside look at Theranos and how he was able to sound the alarm after he realized the company was falling apart. Shultz will take attendees behind the story that everyone is talking about: the rise and fall of Elizabeth Holmes and her diagnostic company, Theranos.
Join Shultz and 1,000+ medical device professionals at the 8th annual DeviceTalks Boston.