Insulet, a diabetes management company based in Bedford, Massachusetts, announced that it entered a new deal with Canaccord Genuity. The new deal will give Canaccord Genuity an $85 million stake in Insulet's common stock.
According to a press release by the company, funds from the new private placement deal will be used for marketing and development of its Omnipod insulin pump. The company also stated that it may underwrite an option for the sale of an additional 15 percent of offered shares.
In December of 2012, Insulet received approval from the U.S. Food and Drug Administration for its next-gen OmniPod insulin pump. The new insulin pump is 25 percent lighter and 38 percent smaller than existing devices on the market.
Canaccord Genuity is a global investment bank that focuses on growth-oriented companies. It currently has operations in 12 countries around the world and has the ability to get companies listed on 10 different stock exchanges.