What happened

In response to announcing collaboration deals with Elekta and Medtronic (NYSE: MDT) as well as a common stock offering, shares of ViewRay (NASDAQ: VRAY), a seller of innovative radiation therapy machines, jumped 31% as of 11:15 a.m. EST on Tuesday.

So what

Here are the key terms of the deals:

• ViewRay signed a nonbinding collaboration deal with Elekta AB that is designed to "advance the knowledge and use of [magnetic resonance]-guided radiation therapy." As part of the deal, Elekta has agreed to invest capital in ViewRay that could represent up to a 9.9% minority interest position.
• ViewRay also has signed a nonbinding memorandum of understanding with Medtronic, which has also committed to taking a minority interest in ViewRay.
• ViewRay's largest shareholder has also announced its intention to invest additional capital that would enable it to maintain its current ownership percentage.
• Elekta and Medtronic stated that they won't invest unless the total equity capital raise is at least $75 million.
• ViewRay announced its intention to raise $75 million from a common stock offering. The underwriters of the deal have a 30-day option to purchase up to an additional $11.25 million in stock at the offering price.

Image source: Getty Images.

Given the news, it's easy to understand why shares are flying high today.

Now what

ViewRay CEO Scott Drake stated:

We are pleased to announce these important collaborations and investments in ViewRay. Our goal is to concurrently prove the value of MR-guided radiation therapy and strengthen our balance sheet. We are well-positioned to drive MRIdian to standard of care. The ability to see clearly during the procedure, track tumors and soft tissues, and auto-gate the beam is integral to delivering highly precise, personalized medicine."

2019 has been a rough year for ViewRay's investors, but these collaboration deals and big capital raise could help to jump-start this growth stock's turnaround.

ViewRay is still a very risky investment, but there's no doubt that winning the thumbs-up from both Elekta and Medtronic gives this company a much-needed credibility boost.

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Brian Feroldi has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.