Houston-based OrthoAccel®Technologies, Inc. has announced that the company will seek to boost its sales and marketing initiatives through a recently completed equity financing round worth $5 million. OrthoAccel indicated in the announcement that the company’s lead investors, HealthpointCapital and S3 Ventures, were principal participants in the financing round, in addition to several other current stockholders.
Michael K. Lowe, president and CEO of OrthoAccel, sought to characterize the new round of investing as a strong vote of confidence in the company’s AcceleDent® technology: “We appreciate the confidence and support of our stockholders. We expect 2014 to be a year of significant growth as we continue to expand our market presence in the United States and other key markets. The additional financing will provide critical resources towards that objective.” The AcceleDent® is the only FDA-cleared, Class II medical device that speeds up orthodontic treatment by as much as 50 percent.
2013 proved to be an aggressive sales growth year for OrthoAccel, which saw an increase in sales by 170 percent. In addition to these impressive sales numbers, Lowe added that “the company secured a debt facility for up to $4 million with Comerica Bank in November 2013. The combined equity and debt facility will provide up to $9 million in additional financing to support expansion in major metropolitan markets,” according to the company’s press release.
Doug Bukaty, OrthoAccel’s vice president of sales, attributed the sales increase to the rapid adoption and escalating praise that AcceleDent is achieving among orthodontists: “The 170 percent sales increase is a result of AcceleDent’s rapid market adoption in 2013 when the hands-free device became available in over 1,000 orthodontic locations in North America,” and adding that, “The additional financing will allow us to engage even more orthodontic practices in key markets through our sales team and marketing efforts that are targeted to both industry and consumer audiences.”
As a result, OrthoAccel believes that the new $5 million in funding will enable the company to take it’s marketing and sales effort to the next level, which, combined with AcceleDent’s apparent viability, should continue to bear impressive sales numbers for the company.
“With many of the most respected orthodontists prescribing AcceleDent, we anticipate that AcceleDent will soon become the standard of care for our industry,” added Bukaty. “The timing is optimal as the orthodontic industry is in an overall growth phase with a 20 percent increase in patients since 2010, and a rapidly growing adult patient segment.”