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Preceptis Medical is Seeking $1M
Part of the Hummingbird Tympanostomy Tube System designed by Preceptis Medical. (Photo from instructional video by Preceptis Medical)

Preceptis Medical is Seeking $1M

The local startup, which won the 2013 Minnesota Cup, makes a minimally invasive device used to treat children with serious ear infections and other conditions.

Preceptis Medical is looking to raise $1 million, according to an SEC document filed Tuesday.
 
To raise the capital, the Plymouth-based medical device company is selling senior convertible promissory notes and warrants—a type of loan that can be switched into equity at a future time, either when the company hits certain benchmarks or at the investor’s request.
 
Investors must commit $25,000 minimum to take part in the round, Preceptis indicated. So far, no investors have taken part in the company’s latest fundraising effort.
 
Preceptis has been successful in the past selling convertible debt. The most recent case was in September of last year when it sold $3 million in convertible debt, which was used to expand its sales and marketing efforts for the launch of its flagship Hummingbird TTS device.
 
Designed to reduce pain and surgical time for children undergoing ear tube procedures, the Hummingbird Tympanostomy Tube System was approved two years ago by the FDA for use in hospitals around the country.
 
The concept for the surgical tool led Preceptis to taking home the grand prize in the 2013 Minnesota Cup entrepreneurial competition.
 
Since Preceptis’ founding in 2011, the company has successfully raised upwards of $8 million.
 
TCB asked Preceptis chief executive Steve Anderson what the company’s plans were for the $1 million it now hopes to raise, but he did not respond by press time.