Additive Orthopaedics to Bolster Product Line, Hire New Employees with Support from NJ CoVest Fund
TRENTON, N.J. (June 13, 2019) – The New Jersey Economic Development Authority (NJEDA) today announced that it has closed a $250,000 convertible note to Monmouth County-based Additive Orthopaedics through the NJ CoVest Fund. The Fund is designed to help emerging technology and life sciences companies bridge the funding gap between product development and commercialization and further the NJEDA’s ability to support the businesses throughout their growth lifecycle.
Additive Orthopaedics, located in Little Silver, is an early-stage company focused on integrating advanced manufacturing and biologics to develop orthopaedic implants and devices for foot and ankle repairs. With an emphasis on trauma and limb salvage treatments, the products can be customized for individual patients. For example, Additive Orthopaedics is able to use a patient’s CT scan to generate a 3D printed bone or joint replacement to help patients who would otherwise be faced with an amputation or joint fusion.
Additive Orthopaedics Chief Executive Officer (CEO) Greg Kowalczyk noted that his company plans to use funding from the NJ CoVest Fund to hire new employees, finance additional research and development, and obtain necessary regulatory approvals.
“New Jersey offers many resources for entrepreneurs, like myself, who are eager to expand the reach of their companies,” Kowalczyk said. “We’re at a critical time in Additive’s lifecycle and support from the NJ CoVest Fund will be instrumental in our plans to advance this incredible technology that has potential to provide life-changing devices to surgeons and their patients.”
“Additive Orthopaedics is at the nexus of advanced manufacturing and life sciences – two focus sectors identified by Governor Murphy’s comprehensive economic plan as essential to reclaiming New Jersey’s role as a leader in innovation,” NJEDA CEO Tim Sullivan said. “Achieving this vision hinges on our ability to support companies in high-growth sectors that are changing lives not only through the products they offer, but also through the career opportunities they provide.”
The NJ CoVest Fund provides funding to New Jersey-based early-stage technology companies in the form of convertible notes with warrants, requiring a negative pledge and springing lien on protected intellectual property. No payments are required on the notes for seven years to allow companies sufficient time to grow. With a total funding pool of $3 million, eligible technology companies can receive investments ranging from $100,000 to $250,000. NJ CoVest funds feature three percent interest and 10-year maturity.
About the New Jersey Economic Development Authority
The New Jersey Economic Development Authority (NJEDA) serves as the State’s principal agency for driving economic growth. The NJEDA is committed to making New Jersey a national model for inclusive and sustainable economic development by focusing on key strategies to help build strong and dynamic communities, create good jobs for New Jersey residents, and provide pathways to a stronger and fairer economy. Through partnerships with a diverse range of stakeholders, the NJEDA creates and implements initiatives to enhance the economic vitality and quality of life in the State and strengthen New Jersey’s long-term economic competitiveness.