10 Feb MB Venture Partners Announces the Successful Sale of Memphis-based CrossRoads Extremity Systems to the DePuy Synthes Companies of Johnson and Johnson

(Memphis, TN) February 10, 2022 – MB Venture Partners (“MBVP”) is very pleased to announce the sale of it’s portfolio company, Memphis-based CrossRoads Extremity Systems (“CrossRoads”, or the “Company”) to Johnson and Johnson DePuy Synthes Companies (NYSE: JNJ), the global leader in musculoskeletal healthcare.

CrossRoads is a pure-play, innovative designer and manufacturer of procedure-specific, sterile-packed implants and instruments for elective foot & ankle surgery. The Company’s comprehensive portfolio is centered on differentiated products for foot surgery with proven benefits such as dynaBunion4D , miniBunion3D  and DynaForce™ Staple Compression Plates. These “breakthrough technologies for faster healing” deliver improved operating room experience, simplicity and accuracy for the surgeon and better patient outcomes. In addition, CrossRoads’ high-quality, reusable instrumentation and unique EcoSMART  instrument management program promotes efficient inventory management and improved economics for healthcare facilities. The Company’s products have been used in over 25,000 surgeries to date.

MBVP first invested in CrossRoads in 2014, shortly after the Company was founded by Glen Coleman, Vernon Hartdegen, and Chad Hollis. Gary Stevenson, MBVP’s co-founder and managing partner, joined the founders on the Company’s board. MBVP was the lead and largest investor in each of the Company’s first four rounds of financing occurring from 2014 to 2018. These financings provided the necessary capital for CrossRoads to develop and launch innovative implants and instruments for foot and ankle surgeons, ambitiously growing revenues each year.

“CrossRoads perfectly fit MBVP’s investment preference for musculoskeletal medical device start-ups and we were especially happy it was right here in Memphis. At the time of our initial investment, the Company was still pre-revenue, but we were impressed with the founders’ prior experience and vision for the

future,” Stevenson said. “We’re glad we chose to be one of their financing partners. Management execution has been crisp from the start, but especially in the last two years overcoming the stiff headwinds from COVID and supply chain constraints. Along the way, we’ve done our fair share to help the Company attract capital from other investors, especially the significant 2019 financing with HealthpointCapital.”

HealthpointCapital is the leading private equity firm focused exclusively on the musculoskeletal sector. In May 2019, HealthpointCapital completed a combination buyout and growth capital financing with CrossRoads, providing the necessary funding to accelerate commercialization including a key acquisition.

“Our excellent working relationship with Vernon Hartdegen and Gary Stevenson were instrumental as we rapidly invested in product launch velocity, acquisitions, and significant development of the sales and marketing organizations” said Mike Mogul, HealthpointCapital President. “We couldn’t be happier with the performance of the company and the terrific home it found at Johnson and Johnson’s DePuy Synthes.”

Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C. acted as legal advisor and Morgan Stanley served as financial advisor to CrossRoads.

About MB Venture Partners:

MB Venture Partners is a Memphis-based venture capital firm that provides capital and strategic direction to life sciences start-ups. The Firm invests in medical device and biotechnology companies at all stages of development. We are especially interested in funding product solutions for musculoskeletal disease. In fact, we have hosted the annual Musculoskeletal New Ventures Conference (www.mnvc.org) in Memphis for the last 19 years.

The Firm was founded by Joseph R. “Pitt” Hyde III and Gary Stevenson in 2001 and has since raised four Funds totaling more than $120 million in committed capital under management. Notable other recent exits from musculoskeletal start-ups include Nashville-based BioMimetic Therapeutics (IPO, later acquired by Wright Medical), Salient Surgical (acquired by Medtronic), and Cayenne Medical (acquired by Zimmer Biomet).

Gary Stevenson

Co-Founder and Managing Partner

MB Venture Partners

(901) 230-5303

www.mbventures.com

SOURCE: MB Venture Partner