STONEBRIDGE ASSOCIATES ADVISES SMARTPILL
ON $9.4 MILLION EQUITY FINANCING
BOSTON, Massachusetts—August 3, 2010—Stonebridge Associates was recently retained by SmartPill, a venture-backed medical device company, to advise the special committee to the board of directors regarding an insider-led investment round and to render a fairness opinion on the transaction. Led by Mitch Briskin, the Stonebridge team worked with the special committee to structure and negotiate the proposed investment. Stonebridge then evaluated the fairness from a financial perspective of the company's valuation as reflected in the transaction.
As a result of the financing, SmartPill received $9.4 million in preferred equity in an investment round led by Psilos Group Managers LLC and joined by other current institutional and individual investors of the company. The funds will be used to begin a clinical trial to assess diagnostic outcomes for the SmartPill, a single-use, ingestible capsule that utilizes sensor technology to measure pressure, pH, and temperature throughout the entire GI tract.
Chip Broadhurst, chairman of the special committee, stated, "Stonebridge was very helpful in assisting the special committee in our negotiations with our lead investor. They also prepared a professional and independent fairness opinion that the committee relied upon in its recommendation to proceed with the transaction."
About Stonebridge Associates
Stonebridge Associates specializes in providing merger and acquisition (M&A), divestiture, private placement, and strategic financial advisory services to middle market and emerging growth technology companies. Applying industry experience and structuring expertise to every engagement, Stonebridge Associates develops creative solutions to help clients achieve superior outcomes. Since 1986, Stonebridge has closed over $3 billion in private financings and advised on over 300 M&A transactions and advisory assignments. Member FINRA/SIPC. For more information, please visit www.stonebr.com.
About SmartPill
Located in Buffalo, New York, the SmartPill Corporation is a privately held developer and manufacturer of cutting-edge technology that offers a new and exciting breakthrough in the rapidly growing diagnostic GI healthcare arena. Their flagship product, the SmartPill GI Monitoring System, is an ingestible capsule that is outfitted with sensors to monitor patients’ gastrointestinal health. It was recently approved by the FDA for use in evaluating colonic transit time in patients with chronic constipation.
For additional information regarding this transaction, please contact Mitchell Briskin, Managing Director, at (617) 357-1770 or mbriskin@stonebr.com.
Ten Post Office Square, Suite 1330 Boston, MA
tel 617.357.1770 fax 617.357.4933 www.stonebr.com
Contact: Ginny Caggiano
VP, Marketing gcaggiano@stonebr.com