Enema Startup Motus GI Closes Nasdaq IPO at $17.5 Million
On January, the colonoscopy add-on device company filed for an IPO on Nasdaq, looking to raise $28.8 Million
On Friday, medical device company Motus GI Holding Inc. announced it has closed its Nasdaq initial public offering at $17.5 million. The company filed for an IPO in January under the ticker MOTS, hoping to raise $28.8 Million with Piper Jaffray Companies and Oppenheimer & Co. as underwriters.
For daily updates, subscribe to our newsletter by clicking here.Established in 2008 in Israel and incorporated in Delaware in 2016, Motus develops a colonoscopy add-on device called Pure-Vu that is intended to help clean the colon before procedures. A cleaner colon raises the odds of detecting problems like pre-cancerous tissue. Motus' device attaches to a standard scope and creates turbulence within the colon using water that is then drained.
Medical procedures. Photo: Tomeriqo
Motus stated it intends to use the funding to commercialize its device, which was approved by the U.S. Food and Drug Administration in 2016. The company also plans to invest in research and development activities and in receiving regulatory approval for expanded labeling.
Motus has granted the underwriters a 30-day option to purchase an additional 525,000 shares at the $5 initial public offering price, the company said. In February 2017, the company completed a $30 million private placement led by New York-headquartered hedge fund Perceptive Advisors LLC.
Motus is currently not profitable, according to recent company statements.