Synaptive Medical Inc., CCAA

Synaptive Medical Inc., a Toronto-based medical device and technology company specializing in neuro-imaging and precision intervention, obtained CCAA protection on March 19 listing secured debt of approximately US$104 million, including approximately $54.8 million to senior secured creditor EDC.

Synaptive’s business is the development of cutting-edge neurosurgical devices that provide a complete neurosurgery solution.

The company has faced significant financial difficulties in recent years, including sales that have not adequately supported costs associated with Synaptive’s ongoing R&D efforts, maintaining its substantial IP portfolio and paying its significant employee base. These problems have been compounded in recent months by the market uncertainty caused by the threat of tariffs with and against the US—the largest market for Synaptive’s products.

Synaptive has already exhausted its out-of-court options over the last two years, including efforts to raise fresh capital, negotiate workouts with key creditors, temporarily lay off almost 150 employees and pursue a lengthy pre-filing investment solicitation process, but this did not resolve the company’s issues.

The purpose of the CCAA proceedings is to conduct a SISP with EDC providing a DIP loan.

Richter is the monitor.

Counsel is Torys for the company, McMillan for the monitor and Fasken for EDC.