DURHAM, N.C., July 8, 2014 (GLOBE NEWSWIRE) -- Square 1 Bank, the premier banking partner to entrepreneurs and the venture capital community, today announced that it has provided a $7.5 million credit facility to new client NovaSom, Inc., a national leader in Obstructive Sleep Apnea (OSA) home testing. Proceeds of the credit facility will provide working capital to support future growth.
Through the FDA-cleared AccuSom® home sleep test, NovaSom brings innovation and convenience to people battling sleep apnea and its symptoms. The test enables patients to be diagnosed from the comfort of their own home and on their own schedule, eliminating the common 'first-night' effect and improving testing accuracy and collection. Results from AccuSom® have earned national recognition and continue to show very high rates of patient satisfaction. The company currently has 30 professional sales representatives and actively tries to educate physicians on their Home Sleep Testing, or HST, options throughout the country.
John Spitznagel, CEO of NovaSom, said that this transaction marks the beginning of what should be a long and successful banking relationship. "The financial resources made available by Square 1 are vital to the continued success of NovaSom. After being vetted and approved through Square 1's diligence process, management's vision and plans to move into its next phase of development are validated. We are very proud to have such a fine institution behind us as we move into a stronger position in the sleep market."
"With backing from a quality investor syndicate including Quaker Partners, TPG, and Safeguard Scientifics, NovaSom has forged a path in OSA home testing and established itself as a leader in the industry," added Mara Huntington, managing director at Square 1 Bank. "We are excited to support the company's future growth and commitment to convenient healthcare solutions and patient care."
Adele Oliva of Quaker Partners added, "We are pleased to assist NovaSom in their quest to bring sleep apnea testing and diagnosis directly to the patient. This innovative approach not only improves patient satisfaction but also offers a more efficient, affordable option for sleep testing for both patients and payers."
About Square 1 Bank
Square 1 Bank is a full service commercial bank dedicated exclusively to serving the financial needs of the venture capital community and entrepreneurs in all stages of growth and expansion. Square 1's expertise, focus and strong capital base provide flexible resources and unmatched support to meet our clients' needs. Square 1 has offices coast-to-coast in Austin, the Bay Area, Boston, Denver, Durham, Los Angeles/Orange County, New York, San Diego, Seattle, Silicon Valley and Washington, DC. For more information, visit www.square1bank.com.
About NovaSom, Inc.
NovaSom, Inc. is a leader in Obstructive Sleep Apnea (OSA) home testing, with the AccuSom® home sleep test, the only comprehensively supported home sleep test that provides continuous patient support and next-day test results and interpretation for health care professionals. The FDA-cleared AccuSom® is as accurate as sleep lab testing, and significantly more convenient and comfortable for patients. Patients are able to test around their own schedule and can sleep in their own bed, which helps eliminate "first night" effect and improves data collection. AccuSom® is currently covered for more than 150 million commercially insured U.S. lives. NovaSom is accredited by the Joint Commission as an Ambulatory Care Sleep Diagnostic Center & Telehealth Provider, is classified by CMS as an Independent Diagnostic Testing Facility and is an Approved Out of Center Sleep Testing Supplier by the American Academy of Sleep Medicine (AASM). To learn more, please visit www.novasom.com.
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Square 1 Bank
Source: Square 1 Bank; NovaSom, Inc.