Neurostimulation technology developer Mainstay Medical announced that it closed an equity financing worth gross proceeds of $108 million.
Dublin, Ireland-based Mainstay said in a news release that it plans to use the funds for the commercial launch of the ReActiv8 system in the U.S., along with continued expansion in Europe and Australia, plus post-market clinical studies and research.
ReActiv8 is a neurostimulation device designed to treat intractable chronic low back pain associated with multifidus muscle dysfunction, as evidenced by imaging or physiological testing in adults who have failed therapy and are not candidates for spine surgery. Mainstay received FDA premarket approval for the device in June 2020.
Ally Bridge Group and Sofinnova Partners, the former being a new investor, co-led the financing, while an unnamed large global medical device company also participated. KCK Group and Fountain Healthcare Partners also participated.
“A financing of this magnitude, supported by such a quality global investor group, is testament to the confidence in the commercial opportunity for ReActiv8,” Mainstay CEO Jason Hannon said in the release. “We are now strongly capitalized to execute on our corporate objectives in 2021 and beyond, including the launch of ReActiv8 in the U.S. market and acceleration of our commercialization efforts in Europe and Australia.”
