Atlas Spine Partners with OfferBoard Securities for Series B Financing

Jupiter, Fla.-based Atlas Spine Inc. has begun a plan to raise $5 million through OfferBoard Securities to further its existing business and monetize, through a licensing and royalty model, their patented portfolio of spinal implant product systems. The company has engaged OfferBoard Securities to facilitate a capital raise in order to complete their Series B preferred round.

“Through this 506c offering individual accredited investors have the ability to participate in what would previously have been highly limited offering prior to the enactment of Title II of the JOBS Act,” said Andre Peschong, a managing director at OfferBoard Securities. “It is exciting to think about what this could mean for the development of new medical devices”

“We see a tremendous value with the OfferBoard platform as it allows us to broadly reach out to investors both individually and institutionally and tell our story,” said Doug Watson, Atlas Spine CEO. “We have a dynamic intellectual property portfolio of differentiated and disruptive spinal implant products and instrument sets.”

Watson went on to note that many companies in the spinal device industry have been receiving large valuations, saying, “With the recent multiples of deals being executed in our space we felt this is the right time to capitalize in the marketplace.”

Spinal fusion surgeries are the fastest growing sector in the orthopedic market. A June 2013 report indicated that the U.S. MIS (minimally invasive surgery) implant market is expected to exceed $3 billion by 2019. MIS interbody fusion is expected to remain the largest segment of the industry through 2019.

Atlas Spine aims to create disruptive products in the spine implant space. The company reports it has made a strategic decision to modify its go to market strategy with their current IP (intellectual property) portfolio. Rather than a traditional create, build and go to market strategy using traditional channels such as hospitals, stocking distributors and surgeons, Atlas management has chosen a more lucrative path of a licensing and royalty model. According to company officials, this allows for greater margins, lower overhead cost structure and the ability to partner with key industry players. Since inception, Atlas Spine has raised a total of $8.5 million. An existing investor has already committed $1.5 million of the round, and the minimum investment from accredited investors is $25,000.

OfferBoard Securities is a national investment bank and broker dealer with an equity funding platform, headquartered in Princeton, New Jersey.