Alachua-based AxoGen announced Wednesday that it sold $17.1 million in stock to Essex Woodlands, an investment firm specializing in healthcare companies.
AxoGen will use the funding to drive its current marketing program, enter new markets, and develop additional nerve-repair products, according to a news release.
The company makes peripheral nerve-repair products and trades on the Nasdaq stock exchange under the symbol AXGN.
“Based on our current operations, we believe the investment provides AxoGen with the resources to achieve positive operating cash flow,” said President and CEO Karen Zaderej.
AxoGen reported record quarterly revenue of $4.95 million in the first quarter of the year and a net loss of $3.6 million.
The investment gives Essex Woodlands a 16 percent stake in AxoGen’s stock shares. Essex operating partner Guido Neels joins AxoGen’s board of directors, which Zaderez said gives the company access to his experience and relationships with 40 years of experience developing international healthcare businesses.
The deal follows AxoGen’s $13 million merger with LecTec Corp. in 2011, $21 million in private financing in 2013, and public stock offerings of $18 million in 2013 and $13.6 million in February.