Leap Medical secures seed financing to develop innovative technology for detection of brain injuries

Leap Medical Inc., a privately held Medical Device company, announced today that it has successfully secured seed financing in the amount of $1.025 million (Canadian dollars) to develop its innovative technology for the rapid detection of brain injuries and infection. The round, co-led by MSBi Valorisation and investors BDC Venture Capital and GO Capital Fund, should enable the company to complete initial human validation of its platform technology. The round was also supported by a grant from the Quebec Ministry of Economic Development, Innovation and Export Trade (Ministère du Développement économique, Innovation et Exportation - MDEIE) and a loan from the CQVB (Centre québécois de valorisation des biotechnologies).

The company has also negotiated an option agreement with McGill University (Montreal) for exclusive worldwide license rights to develop and commercialise products based on its pioneering photonics research. McGill's technology is the first to exploit the properties of an evanescent field to non-invasively analyze biofluids located several centimetres behind outer tissue layers.

"Leap Medical is an excellent example of leveraging both venture funds and government resources to create a setting that, in the hands of experienced managers, significantly increases the likelihood for a successful transition of University technology to industry", commented Etienne Lagacé, Director of Medical Devices, at MSBi Valorisation. "We are very proud to be a part of the team."

"BDC Venture Capital and GO Capital Fund are excited to be associated with Leap Medical", said Ela Borenstein, Director of Technology Seed Investments. "With its experienced management team and a rich pipeline of innovative products, they are poised to become a significant player in the Medical Device arena."

Each year, millions of patients are admitted to Emergency Departments throughout the world with head injuries and severe or persistent headaches. Physicians are concerned that these symptoms may be due to brain injuries or infection. Both conditions are considered medical emergencies as they can cause permanent brain damage if not diagnosed and treated rapidly. The current standards of care, a CT-Scan of the head or a lumbar puncture (removal of cerebrospinal fluid using a needle inserted in the base of the spine), are invasive, costly, and impractical. Leap Medical's point of care solution is completely non-invasive and requires very little time to perform.

The underlying technology is based on the pioneering research of Dr. David Burns, Professor in the Departments of Chemistry and Experimental Medicine at McGill University. "We have been exploring this technology for several years. The prospect of translating experimental technology into medical solutions that can impact the quality of life of patients is rewarding", said Dr. Burns.

"We are extremely happy to have had the support of the top fund managers, lenders, and government program managers in the province." said Victor Lanzo, President and CEO of Leap Medical. "This investment will allow us to de-risk the technology and put in place a strategic plan to develop world-class solutions in the medical devices sector."