Freedom Meditech Secures $2 Million in Funding from Silicon Valley Bank
SAN DIEGO--(BUSINESS WIRE)--Sep 27, 2012--Freedom Meditech, Inc., developer of non-invasive ophthalmic products for the detection of disease and management of patient health, today announced it has secured a $2 million line of credit from Silicon Valley Bank (SVB). The funds will be used to ramp up manufacturing and distribution of the company's ClearPath DS-120™ Lens Fluorescence Biomicroscope, currently under regulatory review in the U.S. and European Union.
“SVB’s due diligence on our ClearPath DS-120 showed a strong mix of proven technology, market opportunity and just how far we have come in reducing manufacturing, regulatory and marketing risk for the product,” said Craig Misrach, Chairman and CEO of Freedom Meditech. “The financing provided by SVB is a springboard to launch this new and exciting product in the global healthcare marketplace.” Terms of the credit facility include an initial disbursement with additional funds available upon attaining certain milestones. The transaction is in anticipation of a Series B financing close by the company.
The company plans to launch the ClearPath in international markets with an initial focus on countries that accept the CE Mark and CSA Certification Mark. The CE Mark is required to sell in the 27 countries that comprise the EU and is a gateway to other non-regulated markets. CSA certification is required to sell in Canada and is an entrée to certain Latin American markets. The product is also under U.S. Food and Drug Administration 510(k) review.
The ClearPath DS-120 incorporates the use of proprietary biophotonic spectroscopy to detect autofluorescence of the crystalline lens of the eye. The ClearPath non-invasively scans blue light into the lens of the eye in less than six (6) seconds and produces a result immediately at the point of care. The test is painless, requires no special preparation such as fasting, and produces no bio-hazardous waste or disposal cost. This information, along with other data collected in a routine health examination, can provide clinicians with a more robust wellness program designed to identify the potential risk of chronic systemic disease and the need to institute appropriate patient management plans.
About Freedom Meditech Freedom Meditech, Inc. is a medical device company focused on the commercialization of novel ophthalmic technologies for the detection of disease and management of patient health. The company maintains research and development operations throughout California and Ohio with supporting corporate and engineering activities in San Diego, CA. For more information, visit www.freedom-meditech.com.
About Silicon Valley Bank Silicon Valley Bank is the premier bank for technology, life science, cleantech, venture capital, private equity and premium wine businesses. SVB provides industry knowledge and connections, financing, treasury management, corporate investment and international banking services to its clients worldwide through 27 U.S. offices and seven international operations. (NASDAQ: SIVB) www.svb.com. Silicon Valley Bank is the California bank subsidiary and the commercial banking operation of SVB Financial Group. Banking services are provided by Silicon Valley Bank, a member of the FDIC and the Federal Reserve System.SVB Financial Group is also a member of the Federal Reserve System.
The ClearPath DS-120 is an investigational device and is limited by federal (U.S.) law to investigational use. ClearPath DS-120™ Lens Fluorescence Biomicroscope is a trademark owned by Freedom Meditech, Inc.CONTACT: Freedom Meditech Investors Keith Ignotz, 404-444-6030 or Media Bill Wells, 404-281-7490 KEYWORD: UNITED STATES NORTH AMERICA CALIFORNIA INDUSTRY KEYWORD: HEALTH MEDICAL DEVICES OPTICAL MANAGED CARE SOURCE: Freedom Meditech Copyright Business Wire 2012 PUB: 09/27/2012 11:05 AM/DISC: 09/27/2012 11:05 AM http://www.businesswire.com/news/home/20120927005116/