Flowonix Medical nabs about $40 mln

Flowonix Medical has secured about $40 million in funding. The investors included Élevage Capital Management, Clarus Ventures and Hercules Technology Growth Capital. Based in NJ and Mass., Flowonix is a provider of implantable drug delivery solutions.

MOUNT OLIVE, N.J., Nov. 11, 2014 (GLOBE NEWSWIRE) — Flowonix Medical Inc., a medical device company focused on providing advanced, implantable drug delivery solutions, today announced that it has obtained debt and equity financing totaling approximately $40 million.

The transaction includes $20 million in equity investment, led by a private equity fund managed by Élevage Capital Management, LLC. The equity investment also included participation from Clarus Ventures and other existing Flowonix investors, as well as new investors including Hercules Technology Growth Capital, Inc. (“Hercules”) (NYSE:HTGC).

Additionally, the fundraising included $15.0 million in venture term debt financing and an accounts receivable line credit of up to $5 million from Hercules, provided certain conditions are met. Armentum Partners acted as the placement agent for the debt financing.

“Our partners at Armentum were instrumental in this process, with their work leading directly to the completion of this important financing round. Through their efforts, we received an overwhelming response from the lender community, which resulted in term sheets from several highly respected organizations. We ultimately selected Hercules as our lender of choice as a result of their strong reputation, enthusiasm toward the potential of our Prometra System, and proven commitment to supporting the efforts of emerging medical technology companies such as Flowonix,” said Lou Altieri, CFO of Flowonix.