ONWARD Medical raises €20 million to advance spinal cord stimulation therapies

By Bart Brouwers

In a significant financial move, ONWARD Medical, a pioneering medical technology company, has successfully secured €20 million. More than four million new shares were issued for the deal. This was achieved through an accelerated bookbuild offering and a public offering in France. The company, known for its innovative approach to spinal cord stimulation therapies that enhance the quality of life for individuals with spinal cord injuries (SCI) and movement disorders, announced the completion of this major capital increase yesterday.

Onward Medical won a Gerard & Anton award in 2016.

Breakthrough for Onward Medical in spinal cord technology

Onward Medical has received a green light from the American FDA. The company has been accepted into a program to develop its breakthrough brain-computer interface.

The fundraising consisted of two main components: a private placement of 4,307,641 new ordinary shares to institutional investors, company founders, and management and board members via accelerated bookbuild offering, and a separate public offering of 136,803 new ordinary shares to French retail investors through the PrimaryBid platform. The 4,444,444 shares in total were issued at a price of €4.50 per share.

Dave Marver, CEO of ONWARD Medical, expressed his enthusiasm about the successful capital raise, highlighting the fully subscribed upsize option despite the current challenging market conditions. “We thank our new and existing shareholders for their support and confidence in the Company. With these funds, we will work with great intensity to develop and commercialize our breakthrough therapies for people with spinal cord injury.”

Onward Medical takes steps toward a clinical study of its therapy to address hemodynamic instability after spinal cord injury

Onward Medical, the medical technology company creating innovative spinal cord stimulation therapies to restore movement, function, and independence in people with spinal cord injury (SCI).

Research and development

The proceeds from this capital increase are earmarked for several strategic initiatives. The company plans to allocate 45% of the funds to research and development activities, including the continued product development and regulatory approval of its investigational ARC-EX® System for restoring hand and arm function and the ARC-IM® System for improved blood pressure regulation post-SCI. Additionally, 15% of the funds will support establishing a commercial organization in anticipation of the ARC-EX System’s expected U.S. launch in the latter half of the year. This includes hiring a sales team, producing training materials, attending events, developing customer support, and undertaking market access and reimbursement activities. The remainder of the funds will be invested in building an operations infrastructure (35%) and covering working capital requirements (5%).

The new shares are slated for listing and trading on Euronext Brussels and Euronext Amsterdam on March 25, with payment and delivery anticipated on the same date. These shares will be integrated seamlessly with the company’s existing ordinary shares, maintaining equal rights across the board.