Pinnacle Medical Solutions has received a substantial equity investment in a financing round led by Meritus Ventures.
The financing comprised several smaller institutional investors and several individual investors, including one of the company’s founders. The transaction closed on 29 June 2012.
Pinnacle distributes insulin pumps and blood glucose monitoring supplies in Mississippi, Alabama, Tennessee, Arkansas, Louisiana, and Georgia. The investment capital will be used to add key management team members, to expand the company’s sales force, to diversify the company’s product offering, and to establish relationships with an expanded array of managed care companies.
Frank Brumfield, co-founder, chairman, and sole investor in Pinnacle prior to the financing, says: “I am very excited to team with an experienced healthcare investment group led by Meritus Ventures as we guide Pinnacle into its next phase of growth. By pairing with Meritus and the other strategic investors, we have added extensive industry knowledge and new relationships that will allow Pinnacle to enhance its market share. The capital raised will allow Pinnacle to add many key components to its existing business that will be instrumental in its future growth plans.”
“We’ve taken our time to get to know Pinnacle, to better understand the diabetes market, and to construct a plan for rapidly growing the business,” says Grady Vanderhoofven, fund manager of Meritus Ventures and new chairman of the Pinnacle board of directors. “Over the course of the next several months, Pinnacle will be announcing the addition of significant resources at all levels within the company. This capital infusion and the resources we are adding to the business will fuel Pinnacle’s growth. Unfortunately, diabetes management is a growth industry, and Pinnacle is positioned to add significant value at the nexus of patients, health care providers, managed care companies, and manufacturers of products for diabetes management.”
