Corindus Vascular Robotics Inc. is planning to raise net proceeds of $24.5 million through a private placement of newly designated series A convertible preferred stock and warrants.
The Waltham, Mass.-based medical device company will issue series A convertible preferred stock, convertible into 20 million common shares, at $1.25 apiece. Corindus will also issue warrants to buy about 8,750,000 common shares for an exercise price of $1.40 apiece.
New and existing investors including Hudson Executive Capital and BioStar Ventures are participating in the transaction.
Closing of the private placement will occur March 16, subject to customary closing conditions.
The company will use the net proceeds for general corporate purposes, such as the international commercialization of its CorPath GRX System, a U.S. Food and Drug Administration-approved robotic platform.
Upon closing of the transaction, Douglas Braunstein, managing partner and founder of Hudson Executive Capital, will join the board of Corindus.
