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NEW HOPE, PA--(Marketwired - February 28, 2017) - Motus GI Holdings, Inc. ("Motus" or the "Company"), a medical device company dedicated to improving colonoscopy outcomes and experiences, today announced the closing of a $30.0 million private placement, which included conversion of outstanding notes. SternAegis Ventures, through Aegis Capital Corp., acted as the exclusive Placement Agent for the offering which was fully oversubscribed. The lead investor was Perceptive Advisors, with additional investments by Orchestra Medical Ventures, a co-founder of Motus and lead investor in the Company's prior private financings; Ascent Biomedical Ventures; Jacobs Investment Company; GJG Life Sciences; and Pura Vida Investments.
The net proceeds of the private placement will be used to support the U.S. commercial launch of the Motus Pure-Vu system for cleaning poorly-prepped colons during colonoscopies. The Company received clearance from the U.S. Food and Drug Administration to market its Pure-Vu system in September 2016. Pure-Vu is currently being introduced on a pilot basis and the Company expects to complete its first U.S. in-hospital and outpatient installations in the first quarter of 2017. "We are excited with the outcome of this oversubscribed offering. The proceeds from the offering are expected to give us the capital to proceed with the U.S. commercial introduction of the Pure-Vu system and build awareness and support for the Pure-Vu™ system's benefits amongst providers, patients and payers," said Motus CEO Mark Pomeranz.
"Inadequate bowel prep is one of the greatest challenges to effective, successful colonoscopies," Mr. Pomeranz added. "It leads to missed adenomas and procedures needing to be repeated earlier than the recommended guidelines, adding cost to the healthcare system. The Pure-Vu system's ability to rapidly clean the colon during the colonoscopy procedure has the potential to improve the quality of the exam, increase patient satisfaction and reduce costs."
"Motus' Pure-Vu system has the potential to significantly improve colonoscopy , which is one of the world's most common medical procedures with over 15 million performed just in the US every year," said David Hochman, Chairman of Motus and Managing Partner of Orchestra Medical Ventures. "The proceeds of this financing will help us fulfill the enormous potential of this solution, including clinical study initiatives to support expansion of the Pure-Vu system's indication for use in colonoscopies with a significantly reduced preparation for patients who find it difficult to comply with and tolerate conventional, purgative-based prep regimens. We believe that dramatically reducing the bowel prep burden, which is one of the major barriers to colonoscopy procedures, would be welcomed by all."
The securities issued in the offering have not been registered under the Securities Act of 1933, as amended (the "Securities Act"), and were made pursuant to the exemptions from registration provided by Section 4(a)(2) of the Securities Act and/or Rule 506(b) of Regulation D promulgated thereunder. Such securities are therefore restricted in accordance with Rule 144 under the Securities Act.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities. The securities described herein have not been registered under the Securities Act or applicable state securities laws and may not be offered or sold in the United States or any state thereof absent registration under the Securities Act and applicable state securities laws or an applicable exemption from registration requirements.
About the Pure-Vu
The Pure-Vu system rapidly cleanses the colon during a colonoscopy procedure using a mixture of water and air to loosen debris from the colon mucosa while simultaneously evacuating bowel contents. This system reduces dependence on pre-procedural preparation and clears the way for the endoscopist to perform a high-quality examination -- even when the patient did not complete a successful prep. The Pure-Vu system consists of a disposable component and a workstation controller. The disposable fully integrates with any standard colonoscope without compromising handling or interfering with the working channel, allowing the physician to clean and then to visualize, diagnose and, if necessary, treat the colon using standard techniques.
About Motus GI
Motus GI Holdings, Inc. is a medical technology company with subsidiaries in the U.S. and Israel. The Company was spun out of the NGT incubator located in Israel in 2011 by Orchestra Medical Ventures. The Company is focused on the development and commercialization of the Pure-Vu™ system to improve the colonoscopy experience for physicians, patients and payers by enhancing the quality and cost-effectiveness of the exam. The Pure-Vu™ system is indicated to integrate with standard colonoscopes to perform intra-procedural cleaning of a poorly prepared colon, thereby reducing the sole dependency on a successful pre-procedural prep regimen to gain clear visualization of the colon mucosa. For more information, visit www.Motusgi.com.
This press release contains certain forward-looking statements, including those relating to the use of net proceeds from the offering and the Company's product development, market opportunity, competitive position, possible or assumed future results of operations, business strategies, potential growth opportunities and other statements that are predictive in nature. The Company has made every reasonable effort to ensure the information and assumptions on which these statements are based are current, reasonable and complete. However, a variety of factors, many of which are beyond the Company's control, affect the Company's operations, performance, business strategy and results and there can be no assurances that the Company's actual results will not differ materially from those indicated herein. Additional written and oral forward-looking statements may be made by the Company from time to time. The Private Securities Litigation Reform Act of 1995 provides a safe-harbor for forward-looking statements.
These statements may be identified by the use of forward-looking expressions, including, but not limited to, "expect," "anticipate," "intend," "plan," "believe," "estimate," "potential," "predict," "project," "should," "would" and similar expressions and the negatives of those terms. These statements relate to future events or our financial performance and involve known and unknown risks, uncertainties, and other factors which may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Prospective investors are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date of this presentation. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.Amiad Finkelthal Russo Partners (646) 942-5626 Shai Biran, Ph.D.Russo Partners, LLC(212) 845-4253Jenene ThomasJenene Thomas Communications, LLC(908) 938-1475NEXT ARTICLE
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