Minnow Medical Completes $4.7 Million in Equity and Convertible Debt Financing Funds to Support European Clinical Trials for Peripheral Vascular Disease Therapy
LAGUNA HILLS, Calif., Oct. 20 /PRNewswire/ -- Minnow Medical, Inc., a developer of a novel platform technology employing radiofrequency thermoplasty for the treatment of in-stent restenosis and other peripheral vascular conditions, announced today that it had closed two separate financing transactions valued at an aggregate of $4.7 million. The transactions consisted of the sale of $3.2 million in preferred stock and $1.5 million in convertible notes that convert into preferred stock. The lead investor in both transactions was Switzerland-based Neomed Management. Also participating in the financings were Minnow Board Chairman Olav Bergheim, Christopher Weil & Company, Inc. and several additional private investors.
Use of proceeds from the financings includes extinguishing bank debt, providing working capital and financing a European clinical trial to further test the company's ZCath™ System, a patented angioplasty balloon catheter combined with controlled radiofrequency energy whose design promises to reverse restenosis that has developed in peripheral vascular stents.
Raymond W. Cohen, CEO of Minnow, said, "We are encouraged by the vote of confidence by our existing investors that recognize the potential of the Minnow technology and the large patient populations that could benefit from its final development and commercialization. Peripheral in-stent restenosis, or a build-up of plaque within implanted stents in leg arteries, is a dangerous condition that is impacting thousands of patients today. 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."
About NeoMed Management
NeoMed Management is an international investment firm, exclusively focusing on the healthcare and life science industry. Founded in 1996, NeoMed has established four funds, with total committed capital exceeding $200 million. NeoMed invests in early-stage companies with outstanding growth prospects. Portfolio companies typically develop innovative products addressing inadequately served medical needs in the following industry sectors: pharmaceuticals, biotechnology drugs, diagnostics, medical devices and instruments.
About Christopher Weil & Company, Inc.
Christopher Weil & Company, Inc. is a San Diego-based FINRA-member Broker-Dealer and SEC Registered Investment Advisor that, together with affiliates, has sponsored and managed over fifty private equity funds formed to invest in real estate, oil/gas operations, small business equity, venture capital and specialty securities portfolios.
About Minnow Medical, Inc.
Minnow Medical, is a privately-held, venture-backed development stage company developing novel technology employing radiofrequency thermoplasty for the treatment of in-stent restenosis and other peripheral vascular conditions.
Minnow's initial product, the ZCath System, combines a patented low-pressure percutaneous transluminal angioplasty balloon catheter with uniformed and controlled RF energy intended to safely reverse and prevent the progression of peripheral vascular disease by restoring blood flow, reducing plaque burden and reducing restenosis without vessel trauma. The product has advanced from pre-clinical to clinical stage testing and has achieved the CE Mark in Europe for use in reducing plaque in peripheral leg arteries. The Company has also filed a 510(k) with the Food and Drug Administration seeking marketing clearance in the United States for the aforementioned clinical indication. The Company is ISO 13485 Compliant and FDA registered.
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SOURCE Minnow Medical, Inc.