Mainstay Medical pulls in $34m for Reactiv8 neurostim device for chronic pain

Mainstay Medical (EPA:MSTY) said last week that it raised a $34 million (€30 million) equity round for its Reactiv8 neurostimulation device, including a $17 million (€15 million) contribution from family investment fund KCK.

Proceeds from the 2.3-million-share flotation, priced at $14.70 apiece (€13.00), are slated for European commercialization of the Reactiv8 device (the system won CE Mark approval in the European Union last month for treating chronic lower back pain). Mainstay said it also plans to spend the cash on clinical trials ahead of a bid for pre-market approval in the U.S.

Existing backers Sofinnova Partners ($5.7 million or €5.1 million), Fountain Healthcare Partners ($3.4 million or €3 million), Capricorn Venture Partners, IPF Partners and several individual investors also participated, Dublin-based Mainstay said. Board member David Brazabon put up $340,000 (€300,000), the company said.

“This fundraising will allow us to further progress towards our objectives of commercialization of ReActiv8 in Europe and the U.S., and help improve the lives of millions of people who suffer from chronic low back pain. We thank our existing investors for their continuing support, and we are proud to welcome KCK as the cornerstone investor for this fundraising, as well as several other new investors in Mainstay,” CEO Peter Crosby said in prepared remarks.

Mainstay said it plans to 1st focus on Germany, where it has a direct sales force. Amsterdam’s Kempen & Co. and Dublin’s J&E Davy were financial advisors and placement agents for the round, with Dublin’s Merrion Capital as placement agent, Mainstay said.

Last August, the company raised $15 million in a debt financing round from IPF Partners.

($1 = €0.883674)

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