SonaCare Medical, a leading developer and manufacturer of high intensity focused ultrasound (HIFU) technologies, has closed a transaction with Palo Alto-based Decathlon Capital Partners in a $3 million growth financing to capitalize on the recent publication by The Centers for Medicare and Medicaid Services of a reimbursement code for the company’s minimally-invasive HIFU prostate tissue ablation. Scale Finance’s Dave Gilroy advised the company throughout the process of raising this capital.
The new code, which went into effect on July 1, makes SonaCare’s HIFU technology more accessible to men seeking a minimally invasive, targeted Sonablate prostate procedure.
“There are approximately 170,000 new prostate cancer cases each year in the U.S., with an additional 40,000 – 60,000 cases recurring after previous treatment,” said SonaCare Medical CEO Mark Carol. “Obtaining a C-code legitimizes the important role of HIFU technology in modern-day prostate care. With the financing provided by Decathlon Capital, we can now invest in the efforts necessary to substantially increase the clinical availability of our technology.”
“SonaCare Medical provides the next generation of ablative technologies that deliver care with precision while sparing surrounding healthy tissue,” added chairman and founder Stephen Puckett. “We look forward to working with Decathlon Capital and other partners to bring SonaCare’s solutions to patients across the country.”
“We’re proud to support SonaCare Medical as it embarks on its next growth phase,” said Decathlon Capital partner John Borchers. “With an addressable market of more than $10 billion annually in the U.S. alone, SonaCare needed a flexible, strategic capital solution that would help it expand. We’re pleased to be working with SonaCare, and are looking forward to a successful relationship.”
About Decathlon Capital Partners
Decathlon Capital Partners provides growth capital for companies seeking alternatives to traditional equity investment. Through the use of highly customized revenue-based financing solutions, Decathlon provides long-term growth capital without the dilution, loss of control and operational overhead that often comes with equity-based funding. With offices in Palo Alto and Park City, Decathlon is the largest revenue-based funding investor in the U.S. and is active across a wide range of sectors and all North American geographies. Learn more at www.decathloncapital.com.
About SonaCare Medical LLC
Founded in 2004 and headquartered in Charlotte, NC, SonaCare Medical is a world leader in minimally invasive ultrasound technologies. The company is committed to developing focused ultrasound related technologies that support precise and innovative procedures for the treatment of a range of medical conditions. SonaCare Medical, with its subsidiary Focus Surgery, Inc., designs and manufactures medical devices, including the following: Sonablate®, which has 510(K) clearance in the U.S.; Sonablate® 500, which has CE Marking and has obtained regulatory authorization in more than 50 countries outside the U.S.; Sonatherm® laparoscopic HIFU surgical ablation system, which has 510(K) clearance in the U.S., has CE Marking and has obtained regulatory authorization in more than 30 countries outside the U.S.
About Scale Finance
Scale Finance LLC (www.scalefinance.com) provides contract CFO services, Controller solutions, and support in raising capital, or executing M&A transactions, to entrepreneurial companies. The firm specializes in cost-effective financial reporting, budgeting & forecasting, implementing controls, complex modeling, business valuations, and other financial management, and provides strategic help for companies raising growth capital or considering M&A/recapitalization opportunities. Most of the firm’s clients are growing technology, healthcare, business services, consumer, and industrial companies at various stages of development from start-up to tens of millions in annual revenue. Scale Finance has multiple offices in the Carolinas including Charlotte, Raleigh/Durham, Greensboro, and Wilmington with a team of more than 45 professionals serving more than 130 companies throughout the region.