Motus GI raised $25.6 million in a new offering, with 171 investors contributing to the round, according to regulatory filings. The Tirat Carmel, Israel-based company said it still has $4.4 million left to raise.
Although the company has not made a formal statement detailing how it plans to spend its newly-acquired funds, it wrote in an SEC filing that $1.5 million dollars will go to sales commission and that some of the proceeds will be used for general working capitol purposes, including the salaries of executives.
The company’s offering of equity, option, or warrant made its 1st sale on Dec. 22 and included an over-allotment option and some debt conversion.
In November last year, Motus GI touted clinical data evaluating its Pure-Vu cleaning system, which is used directly with a standard colonoscope to preform intra-procedural cleaning of poorly prepared colons.
In a clinical trial, researchers evaluated the Pure-Vu device in 50 colonoscopies, using a regimen of an 18-24 hour liquid diet and bisacodyl tablets designed to deliberately create inadequately prepped colons.
The team found that the Pure-Vu system significantly increased the number of participants with an adequate cleansing level from 31% at baseline to 98% after use of the device.
Inadequately prepped colons put a burden on the healthcare system, as patients are sometimes told that they must return for a 2nd procedure. In-patient procedures are even trickier, CEO Mark Pomeranz said, because often these patients need to spend 2 days in a hospital bed just to get them clean enough for a quality exam.
“You can imagine the cost of that,” Pomeranz told us. “You’re looking at anywhere between $1,800 to $2,000 a day just for the cost of a hospital bed.”