DGIMED Ortho, Inc. announced that they have completed a $3.4 million Series A round of financing to support the further development of a new, proprietary system to assist orthopedic surgeons in the delivery of long bone intramedullary nail implants. Dan Gladney, Founder and Chairman, acquired the technology rights through an agreement with the Midwest Orthopedic Research Foundation, Devicix LLC, and Ramon B. Gustilo, M.D. in 2008. The funds will be used to fund the development of a proprietary drill and intramedullary nail system. The Company plans to file a 510(k) submission in the near future. Cedar Point Capital, LLC was the Company’s sales agent for this funding and the Company was represented by its legal counsel, Oppenheimer Wolff & Donnelly LLP.
The Company also announced the hiring of two senior executives. Philip I. Smith has been hired as the Company’s President and Chief Executive Officer. Mr. Smith was most recently the Executive Vice President – Strategy and Business Development for Vital Images, Inc. Mr. Smith has previously served as Chief Executive Officer of Thermonix, Inc. and as Vice President – Marketing & Business Development of Image-Guided Neurologics Inc., both early stage medical device companies. Mr. Smith was also an investment banker specializing in medical devices with Piper Jaffrey & Co. Mr. Smith also serves on the board of Angeion Corporation and the Minnesota Children’s Museum.
Scott P. Youngstrom has been hired as the Company’s Vice President – Finance and Chief Operating Officer. Mr. Youngstrom will also handle the responsibilities of chief financial officer. Mr. Youngstrom was most recently the Vice President – Finance and Chief Financial Officer for Anulex Technologies, Inc., Enpath Medical, Inc., Compex Technologies, Inc. and Acist Medical Systems, Inc., all Minnesota-based companies.
The Company has recently entered into a five year lease agreement for approximately 11,100 square feet of office, lab and warehouse space located at 12400 Whitewater Drive, Minnetonka, MN 55343. The Company plans to move into its new facility in mid-April 2009. The Company is temporarily located at Devicix LLC, 7680 Executive Drive, Eden Prairie, MN. Devicix is the medical device engineering firm responsible for the development of the drill system technology.
DGIMED ORTHO, INC. is a start-up medical device company founded by Dan W. Gladney that is specializing in a new, proprietary system to assist orthopedic surgeons in the delivery and distal locking of long bone intramedullary nail implants.