Motus GI Holdings Inc (NASDAQ:MOTS) said Thursday it is planning to raise up to $20 million in a public offering with to bolster commercialization and research and development activities for its Pure-Vu system, which is aimed at improving clinical outcomes and enhancing the cost-efficiency of colonoscopy.
The Fort Lauderdale, Florida-based Motus GI flagship Pure-Vu System is a medical device cleared by the Food and Drug Administration designed to reduce costs by facilitating the cleaning of a poorly prepped colon during colonoscopy procedures. It provides safe and rapid bowel cleansing.
Funds raised from the underwritten public offering will go towards commercialization activities for the Pure-Vu System, as well as to continue research and development activities, including clinical and regulatory development.
The facts are simple: inadequate bowel preparation prior to colonoscopy affects a significant percentage of patients’ ability to receive a complete and high-quality exam. If not prepped properly, it can lead to delayed or cancelled procedures, which can increase costs for patients and providers.
The firm said it will offer 6.67 million shares at a price of $3 per share, with gross proceeds expected at around $20 million, before deductions and commissions.
The firm has subsidiaries in the US and Israel, and said it plans to use the remaining net proceeds for working capital and other general corporate purposes. The firm noted it may also use a portion of the proceeds to acquire additional technologies, assets or businesses, and other strategic investments.
Shares in Motus GI traded at $3.09 on Thursday afternoon.
Contact Katie Lewis at [email protected]