Todd Pope, chief executive officer at medical device technology firm TransEnterix, is looking for more exposure, investors and cash.

After disclosing its latest update to the FDA about the company’s robotic surgery technology on Monday, RTP-based TransEnterix (OTCBB: TRXC) said Tuesday that it is moving to raise more capital and wants more exposure to investors.

Shares closed Tuesday at $1.90.

Pope’s plan – the latest in a busy eight months that included a merger and taking the company public – involves multiple moving parts:

  • A reverse 1-for-5 stock split. Common shares affected by the move begin trading Wednesday.
  • A move of its shares to the more high profile New York Stock Exchange MKT.
  • TransEnterix also has formalized plans to issue some $100 million in stock.

On March 7, TransEnterix filed a “shelf” registration with the SEC.

Pope, a longtime Triangle resident, took over as TransEnterix CEO in 2006, leaving a similar job at RTP-based Liquidia. That company had recruited him away from Johnson & Johnson. These new moves reflect an extremly busy year for the company, which hopes to win FDA approval of its latest device this year.

“This prospectus is part of a ‘shelf’ registration statement that we filed with the SEC. By using a shelf registration statement, we may, from time to time, issue any combination of the securities described in this prospectus in one or more offerings up to an aggregate maximum offering price of $100,000,000. Each time we sell any of our securities, we will provide a prospectus supplement that will contain more specific information about the offering and the terms of the securities being sold. We may also add, update or change in the prospectus supplement any of the information contained in this prospectus or the documents incorporated by reference,” the company said in the filing.

Company’s Strategy

“The goal of seeking to list on a national exchange is the potential for increased visibility and liquidity as well as access to a larger group of investors and we are pleased to have received NYSE MKT’s authorization today,” Pope said in a statement Tuesday. “We are undertaking the reverse stock split as one step to satisfy the listing requirements.”

The stock symbol will remain TRXC.

TransEnterix merged with a publicly traded firm, Safe Stitch Medical, last September and thus became publicly traded itself in what is called a reverse merger. TransEnterix became the name of the combined firm in December.

As part of that deal, TransEnterix raised $30 million from investors.

TransEnterix, founded in 2006, emerged from Synecor, a medical devices business accelerator with locations in RTP and Silicon Valley. The company has raised more than $75 million in venture capital financing from Aisling Capital, Intersouth Partners, Quaker Partners, SV Life Science Advisers, Synergy Life Science Partners and Parish Capital Advisors.

FDA Update

On Monday, TransEnterix updated its filing with the FDA regarding its latest device known as the SurgiBot. 

“Completing this pre-submission with the FDA on schedule demonstrates that our SurgiBot system development program continues to progress along our anticipated timeline,” Pope said. “Our SurgiBot minimally invasive surgical robotic system, which will allow the surgeon to remain patient-side within the sterile field, represents a new approach in surgical robotics that we are excited to bring to market.”