ORLANDO, Fla., Dec. 10, 2013 /PRNewswire/ -- Vestagen Technical Textiles, Inc., today announced that it raised an additional $7.3 million in an extension of its recent financing round. Existing investor Advent Life Sciences was joined in the extension by new investors Sofinnova HealthQuest Capital and the Clearwell Group. The extension brings the total raised by Vestagen in this financing round to $15.5 million; the company raised $8.25 million earlier this year. In conjunction with the financing extension, Randy Scott, partner at Sofinnova HealthQuest Capital, is joining the Vestagen Board of Directors.
The additional funds will support expanded commercialization of Vestex®, the first in a new class of active barrier protective fabrics for everyday use that are clinically proven to prevent or reduce the acquisition and retention of microbes and other contaminants. Vestex is engineered to have robust liquid repellency and embedded antimicrobial properties, along with enhanced breathability, good durability and affordability. The company's initial focus is on medical scrubs and other protective apparel for healthcare workers, who are at daily risk of exposure to dangerous contaminants and who can unknowingly spread these contaminants to other workers, patients and family members.
"This financing extension reflects our investors' confidence in the transformative potential of our Vestex fabric," said Uncas "Ben" B. Favret III, president and CEO of Vestagen. "Since our initial close we have recruited world-class executives who are advancing our product launch and partnering initiatives, as well as the FDA regulatory process for review of Vestex as a protective medical device. The response to date from potential customers and partners has been excellent, and we look forward to reporting on our progress in the coming months."
Contaminated clothing is a known carrier of bacteria and healthcare workers have the highest rate of illness of any occupation in the U.S. Contamination with difficult-to-treat organisms such as MRSA puts workers at risk and is responsible for many of the most serious hospital acquired infections. A recent peer-reviewed published study confirmed that Vestex scrubs demonstrated a statistically significant reduction in MRSA of more than 99.99% compared to standard uniforms.
"Our Vestex fabric turns everyday uniforms into protective gear that guards workers and patients against the dangerous contaminants that are ubiquitous in healthcare settings, yet they are as good-looking, comfortable and durable as current market-leading scrubs," noted Dale R. Pfost, PhD, Executive Chairman of Vestagen. "We are delighted that our expansive vision for the company is shared by such highly respected investors as Sofinnova's HealthQuest Capital and the Clearwell Group. We look forward to working with new director Randy Scott, who has extensive experience as a successful healthcare technology entrepreneur that we will leverage to help grow the company."
Vestex fabric incorporates three technologies – a durable fluid barrier, an antimicrobial and a technology for wearer comfort. The fluid barrier binds to individual fibers, resulting in a fabric that is highly repellent to bodily fluids, water, oil and dirt. This high repellency works synergistically with Vestagen's embedded antimicrobial technology, which has been shown to be effective against a broad spectrum of organisms. Vestagen's third technology wicks away moisture from inside the fabric and promotes evaporation, enhancing wearer comfort. These benefits are engineered to last for the life of the garment. Vestex fabric is suitable for a variety of applications, including healthcare, public safety and athletic use.
Alliance Healthcare Partners, V-Ten Capital Partners and Advent Life Sciences participated in the first round of the financing, which closed in August 2013.
Vestagen Technical Textiles develops and markets advanced performance textile products and technologies. Vestagen has developed Vestex®, the first in a new class of technology-based, active barrier protective fabrics combining antimicrobial, liquid repellent and breathability properties. Vestex uniforms and scrubs are designed to protect healthcare workers and their patients from dangerous contaminants. They are clinically proven to prevent or reduce the acquisition and retention of contaminants on clothing and are comfortable, durable and affordable.
For more information, visit vestagen.com.
About Sofinnova HealthQuest Capital
Sofinnova HealthQuest Capital makes go-to-market and early growth investments in innovative healthcare companies that are improving both patient outcomes and healthcare economics. Investments focus on the medical device, diagnostics, patient care products, consumer health and healthcare IT fields. The HealthQuest investing team includes deep operational, clinical and scientific expertise and worldwide relationships throughout the healthcare industry that can be leveraged to add value to our portfolio companies. HQC is the newest investment fund from Sofinnova Ventures. For over 40 years Sofinnova has backed some of the most exciting and successful innovators in healthcare.
For more information, visit healthquestcapital.com.
About Clearwell Group
Clearwell Group, a Tampa-based, family office investment manager, invests our partners' capital with the belief that businesses can generate positive impact in addition to investment return. We support high integrity entrepreneurs with a collaborative approach to creating value that leverages our experience and network. This aligns our interests with management to achieve the best possible outcome, with the right amount of capital, over the right period of time. Clearwell makes meaningful minority and control investments in companies located in the southeastern United States with revenue ranging from $0 to $30 million. We invest across the business cycle with the greatest focus on expansion or growth stage companies. Industries of particular interest include healthcare, de-risked technology, food and beverage, consumer products, financial services and software.
For more information, visit clearwellgroup.com.
About Advent Life Sciences
Advent Life Sciences is the dedicated Life Sciences team at Advent Venture Partners, one of Europe's best established growth and venture capital firms. Advent Life Sciences invests predominantly in early-stage and growth equity life sciences companies in the UK, Europe and the US. It will back companies that have a first- or best-in-class approach in a range of sectors within the life sciences sector, including new drug discovery, enabling technologies, med-tech and diagnostics.
For more information, visit adventventures.com.
About Alliance Healthcare Partners
Alliance Healthcare Partners is focused on building and supporting businesses that can create fundamental and lasting changes in healthcare; so that providers, payers, and clinicians can improve the quality of care with fewer resources. The company's Investment Fund focuses on innovative technology and service companies that help healthcare providers deliver enhanced efficiency, improved outcomes and lower cost healthcare. The Fund team identifies innovative, high-growth companies that use new approaches and technologies to disrupt the healthcare status quo.
For more information, visit alliancehcpartners.com.
About V-Ten Capital Partners
V-Ten is a collaborative of experienced investors who provide investment capital for seed, early and growth stage companies that require the invaluable benefit of tried and true to-market strategies, business practices and processes. The V-Ten team has decades of combined experience in leading some of the most diverse companies to the top of their markets. V-Ten's philosophy is to invest in breakthrough companies and to structure each investment collaboratively with exceptional management teams to build superior long-term value. V-Ten was founded by Richard Sharp who was responsible for the success of many iconic American businesses in the last 25 years, including: Circuit City, CarMax, Flextronics International and Crocs.
For more information, visit vtencp.com.
SOURCE Vestagen Technical Textiles, Inc.