Israel-based medical device maker Medigus Ltd. closed a $8 million private placement in support of its SRS Endoscopic system, a minimally invasive treatment for gastroesophageal reflux disease.

The round was sold to OrbiMed Israel Partners Limited Partnership which received 39.9 million shares of Medigus, representing 30.7% of the company.

Following the funding, OrbiMed senior managing director Dr. Nissim Darvish joined Medigus as the chairman of its board of directors, and OrbiMed managing directors Anat Naschitz and Erez Chimovits joined the board, according to a press release.

The company announced the changes amid a pivotal point its history as Medigus prepares to shift from a development-stage company to commercial sales.

"At the critical juncture where we stand, namely the transition from R&D operations to the commercial marketing of our systems in several markets worldwide, the great expertise and financial liquidity offered by OrbiMed will help the company maximize the commercial potential of our SRS innovative endoscopy system for the treatment of Gastroesophageal Reflux Disease in the US, Europe and East Asia," Medigus CEO Dr. Elazar Sonnenschein said in prepared remarks.

Medigus won FDA clearance for the SRS system in May 2012.