Minnow Medical Inc. raised $4.7 million to support a European clinical trial for its peripheral vascular disease therapy device.
The Laguna Hills, Calif.-based company closed two separate financing rounds consisting of the sale of $3.2 million in preferred stock and $1.5 million in convertible notes.
The lead investor in both transactions was Switzerland-based Neomed Management. Minnow chairman Olav Bergheim, agent Christopher Weil & Company Inc. and several private investors also participated.
The company is planning a clinical trial for its ZCath System, a patented angioplasty balloon catheter combined with controlled radiofrequency energy for treating the build-up of plaque within implanted stents in leg arteries. The proceeds will also service bank debt and provide working capital, according to the company.
"We believe that the ZCath represents a straightforward solution to in-stent restenosis and anticipate completing the remaining tasks at hand in order to begin enrolling patients in our European in-stent restenosis clinical study in early 2011" CEO Raymond Cohen said in prepared remarks. The company named Cohen to his executive post and the board of directors this week.
Minnow also this week announced the appointment of two veteran medical device executives. Prabodh Mathur was named chief product development officer and Michael Handley vice president of quality, clinical and regulatory affairs.