Tendon injury treatment firm with Mayo Clinic ties lands $11.8 million

A tendon injury treatment firm that has licensed technology developed at the Mayo Clinic has raised $11.8 million through a PIPE (private investment in a public entity) transaction.

Tenex Health is a California company that has developed the FAST (Focused Aspiration of Soft Tissue) procedurefor percutaneous removal of tissue that can help restore the normal functioning of tendons and soft tissue. Last February, Tenex announced the FDA clearance of its portable device used in conjunction with the FAST procedure that allowedsoft tissue removalin the elbow, knee, ankle, foot, and shoulder.

The company was previously a private firm but became public with a reverse merger withDirect Pet Health Holdings Inc., which trades over the counter. Tenex was looking to raise only $8 million, but interest from investors led it to offer $11.8 million.

“The financing has allowed us to fully integrate manufacturing and production capabilities with operations and sales as well as expand our physician and consumer marketing campaigns surrounding the FAST procedure,” said Jagi Gill, Tenex Health’s founder in a news releaseby the firm’s investment bank.

Orthopedic surgeons have also invested in the company, according to Emergent Financial Group, the Minnesota investment bank that worked with Tenex Health.