ViewRay (NSDQ:VRAY) said today that it raised nearly $14 million in a private placement as it gears up to launch its MRIdian linear accelerator, saying it expects to win regulatory nods in the U.S. and overseas by the end of the year.
Cleveland-based ViewRay said the round was led by existing backers OrbiMed Advisors, Xeraya Capital and Kearny Venture Partners, with participation from 2 board members and private equity shop CRG, which funded a $50 million debt round for ViewRay last year. ViewRay closed a $26.7 million private placement a month later, in July 2015.
The latest round involved more than 4.6 million units (consisting of 1 stock share and a 7-year warrant for 0.3 shares) at $2.9875 apiece. The offering is slated to close Sept. 9, following an initial closing expected for August 22. ViewRay said it plans to spend the cash on commercializing the MRIdian device, R&D and “general corporate purposes.”
“This financing strengthens our balance sheet as we prepare for the introduction of the MRIdian linear accelerator (Linac) technology,” president & CEO Chris Raanes said in prepared remarks. “We see this support as a robust sign of confidence in our significant growth potential. The MRIdian system’s unique visualization ability has already received very positive feedback from clinicians and patients for its ability to fight cancer. We believe that our developing linac technology has the potential to produce strong order growth and significantly improved gross margins. We remain on track to submit for FDA clearance and CE Mark in the 2nd half of this year.”
ViewRay scrapped an initial public offering in April 2015 that would have fetched $52 million at the midpoint.