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GARFIELD HEIGHTS, Ohio — AxioMed Spine Corp. has completed the firstpart of its thirdfinancing round, raising$6.4 million from”leading venture capital firms,” which were not named.

The company that is developingnext-generation spinal disc replacements is working toward a Series C round of$18.5 million, according to awritten statement by its president and chief executive, Patrick McBrayer.

AxioMed will use the moneyto continuedeveloping its Freedom lumbar and cervical disc replacements. The company also plans to use the money to expand its operations by adding to a headquarters workforce of 15 people, once the fundraising round is complete, McBrayer said.

In May, the company won the CE Marking, which enables it to sell its disc replacements inEurope. At that time, AxioMedplanned to introduce its lumbar spine disc replacement tothe 27 European Union countries. It has introduced Freedom in Germany, Switzerland and the United Kingdom, McBrayer said.

Made from a rubberized polymer, AxioMed’s Freedomdisc replacements were designed to restore natural function in the spine.

Previously,AxioMed hadwon $34 million in venture capital from investment firms like CID Equity Partners, EarlyStage Partners, Investor Growth Capital Limited, Primus Capital, Memphis Biomed Ventures, Reservoir Venture Partners and Thomas, McNerney & Partners. The company’slatest round, a $10 million fund-raise, was in July 2008.