Strata Skin Sciences, which develops med tech focused on dermatologic conditions, reached a tentative financing deal for $17 million it plans to use for ongoing operations and to pay down debt.
The company makes the XTRAC excimer laser and VTRAC lamp systems used for treating psoriasis, vitiligo and various other skin conditions.
The financing is subject to approval by shareholders at a special meeting expected to be held by the end of June, the company said. The majority of the funds are to be used for ongoing operations with $3 million slated to pay down a loan with MidCap Financial Trust.
Investors in the deal include Accelmed Growth Partners, Dr. Dolev Rafaeli, Gohan Investments, Broadfin Capital and Sabby Management.
Additionally, Strata announced Rafaeli will assume the role of interim chief executive starting April 10. The current CEO, Frank McCaney, will become the interim CFO.
Rafaeli has more than a quarter century of healthcare experience, having served at a number of companies in various roles that include founding XTRAC, PhotoMedex.
“The company has a portfolio of proven, best-in-class skin science technologies,” Rafaeli said in a statement. “I look forward to helping Strata achieve its goal to become the valued business partner of choice for dermatology practices.”