Mainstay raises €30m to roll out pain treatment
Dublin-based Mainstay Medical has raised €30m through the placement of over 2.3 million new ordinary shares, the company has said.
The medical device company said yesterday it will look to use the money to support European commercialisation and to conduct clinical trials for its flagship back pain product, ReActiv8.
ReActiv8 is an implantable neurostimulation system that is used to treat disabling chronic back pain.
Shares in the placing were offered at €13, which represents a significant discount on the firm's closing price on Thursday.
Mainstay said the shares were to be issued to selected institutional investors in Europe and North America.
The funding will be used for a clinical B-trial of the product to help gather data for a pre-market approval application for the US.
Mainstay chief executive Peter Crosby welcomed the new capital injection into the company.
"This fundraising will allow us to further progress towards our objectives of commercialisation of ReActiv8 in Europe and the United States, and help improve the lives of millions of people who suffer from chronic low back pain," Mr Crosby said yesterday.
The cash raised from the sale of shares is in addition to the $10.4m cash pile the company had at the end of May.
Family investment fund KCK has bought over 1.1 million shares as part of the offering and has acted as a cornerstone investor in the placing.
Mainstay agreed that KCK will be able to nominate two additional non-executive directors to the company.