MONTREAL – April 10th, 2018 – SoundBite Medical Solutions Inc. (SBMS) today announces the closing of a $19.9 million Series A financing, with a possibility of raising more funds in a second tranche later in the quarter.
This round of financing included participation by new and existing Canadian and international investors, including Fidelity Investments Canada ULC. These new cash proceeds will be used to prepare for a strategic commercial launch in Europe after recently obtaining CE Mark approval. In addition, it will allow the company to complete a First-In-Man clinical trial for the SoundBite™ Active Microcatheter and to accelerate its pivotal clinical development plan in order to achieve FDA approval for the peripheral and coronary chronic total occlusion (CTO) indications within the next 30 months.
“The Series A financing builds on an exceptional year for SoundBite which saw the achievement of several key milestones and further evidence of the strong interest SoundBite’s technology and value proposition have generated in the financial and cardiovascular community,” said Martin Brouillette, SBMS Founder and CEO.
SBMS also announced today that Francis Bellido MBA PhD, the company CFO since January 2016, will take the reins as CEO from Martin Brouillette who is reassuming his critical role as Chief Technology Officer, effective on April 10th, 2018. Mr. Bellido has spent his career overseeing and leading the development of several organizations in the healthcare industry. He brings to the company financial management expertise, deep operating and leadership experience, and a global business perspective that he acquired over 30 years of international experience in the Biosciences, Healthcare and Financial industries. Notably, Mr. Bellido managed a $300M life science investment Fund (SGF-Santé) that produced several major winners in the Medical Device Industry (Cryocath, IDI-GeneOhm, OrthoSoft) and earlier in his carrier, he served in several executive positions with Eli Lilly in the United States and Europe including Strategic Asset Director, Global Business Unit Manager and Head of Regulatory Affairs. “I am delighted that Francis is stepping into the role of CEO, I know him well and have worked with him for the past 20 years. I am sure he will play a decisive role in making SoundBite a great success story. I would also like to thank Martin, my partner and co-founder, for his terrific work at the helm of SoundBite during the past nine months and in particular for his determination and commitment during SoundBite’s Series A financing,” said Steven Arless, SoundBite’s Co-Founder and Chairman of the Board.
“It is an honor to be appointed Chief Executive Officer of SoundBite,” said Mr. Bellido. “During my time as CFO, I gained an intimate knowledge of where we are, but, more importantly, of where we need to go. With the support of the talented team at SoundBite we will optimize our value proposition, strengthen our organization and leadership and deliver value to our shareholders.” Martin Brouillette added: “I enjoyed being the CEO of SoundBite for the past months but I believe I could make a greater difference as Chief Technology Officer. Having worked closely with Francis during the Series A financing I am sure SoundBite is in very good hands.”
SBMS initiated operations in May 2015 and in less than three years, the Company has grown to a team of over 30 professional engineers and entrepreneurs, and advanced the technology from a university-based prototype system to a system designed and built under ISO design controls, ready for human clinical trials in Q4, 2016. SBMS technology delivers high energy shock waves through .014” and .018” guidewires into the cardiovascular system to address difficult-to-cross calcified CTOs. Approximately 30-40% of occlusions are difficult, if not impossible, to cross and often result in the need for bypass or amputation surgeries.
CTOs are complete blockages of arteries, which are the result of severe progression of peripheral and coronary artery disease which are two prevalent and growing cardiovascular conditions affecting over 25 million North Americans. Risk factors include diabetes, smoking, obesity, high blood pressure, and cholesterol. It is estimated that between 30-40% of the peripheral and coronary artery disease population possess CTOs.