Woven Orthopedic Technologies has raised $5.4 million in a new round of equity and options financing, according to an SEC filing posted this week.
Manchester, Conn.-based Woven Orthopedics is developing orthopedic products which aim to improve fixation, specifically for procedures using screws, according to the company’s website.
The company produces the OGmend implant system which uses biotextiles to enhance fixation. The first generation version of the device is designed from a biopolymer intended to increase surface area contact between bone and screw to distribute load transfer and aid in bone healing and remodeling, according to the company’s website.
A total of 64 unnamed investors have joined in the round so far, with the first sale date noted last August 9. The round has a minimum investment of $50,000, according to the filing.
Of the funds raised so far, $469,000 will be used to pay the CEO and six directors of the company for its calendar year 2018. The company is looking to raise an additional $12.6 million in the round, according to the filing.
The total amount raised so far includes converted principal and accrued interest of convertible notes sold in an offering opened January 3, 2017 and from a second closing on February 1 this year, according to the SEC filing.
Funds raised in the round will be used for R&D, pre-clinical testing and to support regulatory and intellectual property developments, according to an Ortopedics This Week report.
“The funds are mainly being used for research and development. We are also dedicating funds for pre-clinical testing, quality systems, regulatory strategy and to expand our IP coverage to continue erecting barriers to entry for potential future competition. In addition, a small amount of funds are being utilized to build-out the systems necessary to reach the market (i.e., reimbursement, compliance, education) and we expect that this will increase as the business gets closer to commercialization. We are developing a technology intended to offer a bone-friendly solution that enhances fixation to prevent loss of screw engagement and the additional treatments that typically follow (including reoperations). AO [Foundation], the leading global organization in trauma research identified fracture fixation in osteoporotic bone as a focal area of interest so developing a solution to provide better, faster, and cheaper fixation in various fracture scenarios plays a pivotal role in our business strategy,” strategy & finance VP Brandon Bendes told Orthopedics This Week.
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