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Minnesota’s CSI raises $5 million for arterial plaque-removing device

Cardiovascular Systems Inc. (CSI), based in New Brighton, has raised $5 million from the sale of debt, according to documents filed with the Securities and Exchange Commission.

The company, which had abandoned an effort to go public two years ago, netted $3.5 million and $1.5 million in two separate SEC filings.

In 2008, CSI filed an initial public offering (IPO), hoping to raise $86.3 million to help expand sales of its Diamondback 360 device, which removes plaque from peripheral vessels in the pelvis or leg. But given the weak economy and non-existent demand for IPOs, CSI ultimately merged with Replidyne Inc., a publicly traded shell company with $40 million in cash reserves.

The company is conducting a clinical trial, dubbed Orbit II, to see if Diamondback 360 can effectively treat coronary arteries or vessels above the waist. Winning approval from the Food and Drug Administration for such a use would open a significant new market to CSI, CEO David Martin said.

Former Medtronic Vice President Glen Nelson, a prolific local medical device entrepreneur and investor, serves as CSI chairman.

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