Admedus Limited (ASX:AHZ) is raising up to $16.1 million through a 1 for 7 rights issue priced at $0.07 per share to undertake a number of strategic business opportunities.
This follows the company raising $12 million through a heavily oversubscribed placement to institutional and sophisticated investors.
Funds raised from the rights issue and placement – totalling up to $28 million – will be used for:
- Ongoing sales team build and support: $9 million;
- CardioCel® cardiovascular expansion studies: $3 million
- Expansion of regenerative tissue portfolio: $3.5 million
- Additional regulatory filings: $1 million
- Tissue manufacturing scale up and process development: $2 million
- HPV Phase I/II preparation and study plus manufacturing: $3.5 million
- Additional immunotherapy R&D: $2 million
- Provide further working capital: $2.5 million
- Cost of the Offer: $1.5 million
This is indicative and subject to change.
Any shortfall from the rights issue will be placed by the directors at their sole discretion.
Admedus is a growing healthcare company with an established revenue stream.
Already its first regenerative tissue product, CardioCel®, is available in major markets and the continued sales growth in Europe, North America and Asia have placed it on the path to mark its strongest sales quarter.
The bio-scaffold for the repair of congenital heart deformities and complex heart defects including repairing heart valves recently received initial orders from Hong Kong and added new centres in France and Italy.
CardioCel® is now used in over 60 centres globally with 28 in Europe and a further 28 centres in the U.S.
Over 1,200 patients have benefited from CardioCel® as part of their cardiovascular repair surgery.
Admedus’ business strategies to achieve its goals include:
- The continued uptake of CardioCel® in Europe, United States, Canadian, Hong Kong and Singaporean surgical centres;
- Obtaining additional regulatory approvals for CardioCel®;
- Continued revenue growth of the Company's infusion portfolio;
- Expand the manufacturing and product development capabilities at the Malaga facility;
- Expanding the uses for CardioCel® within the cardiovascular therapeutic area beyond the initial target market of congenital heart defect repairs into heart valve repairs and vascular and vessel repairs;
- Continuing product development of other ADAPT® products to expand the regenerative tissue portfolio;
- Progressing the clinical development of the therapeutic vaccines, in particular the HSV-2 vaccines into a Phase II clinical study and the HPV therapeutic vaccine into a Phase Ib study; and
- Entering strategic partnerships.
Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.