Onward Medical announced today that it successfully raised $21.8 million (€20 million) in gross proceeds through a private placement.
The company offered more than 4.4 million new ordinary shares at an issue price of $4.89 (€4.50) per share. It completed the offering with participation from institutional investors, certain founders and management and members of the board.
Related: Flosonics raises $20M for wearable ultrasound patch
Onward plans to use 45% of the net proceeds to fund R&D activities. That includes the development and regulatory process for its investigational ARC-EX system. ARC-EX nerve stimulation technology aims to restore hand and arm function. Additionally, the company plans to put funds toward its investigational ARC-IM system for improved blood pressure regulation after spinal cord injury.
The company also has the ARC-BCI system that won FDA breakthrough device designation last month. Onward didn’t list that system among its intended use of proceeds, though.
It expects to put 15% of the money toward establishing a commercial organization ahead of the expected U.S. ARC-EX launch. Onward anticipates that launch in the second half of this year. It wants to hire a field sales organization, produce training and education materials and more.
Other uses include building quality operations and other infrastucture capabilities (35%) and funding working capital requirements (5%).
Onward expects the net proceeds to extend its current cash runway into mid-2025.
“We are delighted to announce the successful capital raise of €20 million, including a fully subscribed upsize option despite challenging market conditions,” said Dave Marver, CEO of Onward Medical. “We thank our new and existing shareholders for their support and confidence in the company. With these funds, we will work with great intensity to develop and commercialize our breakthrough therapies for people with spinal cord injury.”
