Corindus Vascular Robotics (OTC:CVRS) said today it inked a private placement deal worth $25 million through the offering of newly-designated Series A convertible preferred stock, with funds slated to support global commercialization of its CorPath GRX robotic surgical system.
The Waltham, Mass.-based company said it will issue shares of Series A convertible preferred stock convertible into 20 million shares of common stock at $1.25 per share alongside warrants to purchase an aggregate of 8.8 million shares of common stock at $1.40 per share.
Stocks are being issued to an existing group of investors, including Hudson Executive Capital and BioStar Ventures, alongside new investors, Corindus said. The deal is expected to close on March 16.
Corindus said it expects to net proceeds of approximately $24.5 million, which it intends to use for general corporate purposes and global commercialization of the CorPath GRX system. As part of the deal, Douglas Braunstein has been named to the company’s board of directors.
“We are very pleased with this transaction and to have these leading firms invest in Corindus. The guidance and leadership from Doug’s addition to our board of directors will bring significant value to Corindus as we continue to ramp up our commercial efforts with CorPath GRX,” prez & CEO Mark Toland said in a press release.
Earlier this week, Corindus posted fourth quarter and full year 2017 earnings with sales that topped expectations on Wall Street.
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