Conventus Nabs Credit Facility to Help Market its Primary Technology

Conventus Orthopaedics Inc. has closed a $10 million credit facility to help fund with the sale and marketing of its Conventus DRS to treat distal radius fractures (otherwise known as a broken wrist). The technology was cleared by the U.S. Food and Drug Administration in January last year and has CE mark in Europe.

According to company officials, the funds also will be used to accelerate the development and sale of new indications for the Conventus platform technology. Companies frequently implement a credit facility in conjunction with closing a round of equity financing (raising money by selling shares of its stock).

The credit facility was provided by Oxford Finance LLC and Square 1 Bank. Conventus is a medical device company focused on creating innovative, less invasive solutions to treat a broad range of challenging peri-articular fractures.

“Oxford is pleased to partner with Square 1 to provide capital to Conventus as it seeks approval in a second indication for its novel fracture fixture technology”

Paul Buckman, Conventus’ CEO, said: “We are delighted to be partnering with both Oxford Finance and Square 1 Bank in our quest to continue building value at Conventus. This funding will enable Conventus to continue efforts to expand our game-changing platform technology with new indications such as Proximal Humerus and more in the lower extremities.”

Conventus DRS technology provides clinicians with a unique, self-expanding implant that stabilizes the fracture fragments from within the bone. The surgical procedure requires a minimal incision on the forearm and minor incisions at the wrist. The technique, Conventus officials claim, reduces surgical trauma by as much as 80 percent compared to traditional plate and screw fixation surgery. Using advanced nitinol technology, the platform uses 90 percent less hardware than traditional treatments and results in significantly less recovery time, according to the company.

“Oxford is pleased to partner with Square 1 to provide capital to Conventus as it seeks approval in a second indication for its novel fracture fixture technology,” said Chris Herr, managing director for Oxford Finance. “Conventus is led by a highly regarded management team with extensive medical device experience, and we are confident the company will continue to expand its platform, enabling better outcomes and faster recovery for patients.”

Oxford Finance, headquartered in Alexandria, Va., is a specialty financial services firm that provides capital exclusively to life sciences and healthcare services companies worldwide. Square 1 Bank, based in Durham, N.C., specializes in providing financial services to entrepreneurs and venture capitalists.

Venture-backed, Minneapolis, Minn.-based Conventus Orthopaedics was founded by a team of medical device professionals and physicians to create a less-invasive platform technology for a broad range of challenging periarticular fractures, which are fractures that occur around or immediately adjacent a joint, the points in the body where bones meet and are held together with ligaments and tendons.