Admedus Limited (ASX:AHZ) has raised $16.1 million through a fully subscribed rights issue to undertake a number of strategic business opportunities.
This adds to its successful $12 million placement in March, bringing the total raised up to $28.1 million.
Proceeds will be used to increase sales of its lead regenerative tissue product CardioCel®, supports continued development of its regenerative tissue portfolio and advance its immunotherapy programs with Professor Ian Frazer.
“The company thanks shareholders for their support for this Rights Issue and the recent Placement with the total capital raised of approximately $28 million,” chief executive officer Lee Rodne said.
“This will assist the progression of the Company’s programs and plans as we continue to grow our integrated global healthcare business.”
Use of Funds
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.
The company will this month start vaccine dosing under its Herpes Simplex 2 (HSV-2) Phase II study with patient enrolment on track for completion this quarter.
It is also expanding its regenerative tissue portfolio into additional large target repair markets following successful initial results from a pre-clinical study of ADAPT® treated tissue in the repair of dura mater, the outer membrane enveloping the brain and spinal cord .
The fully subscribed $16.1 million rights issue brings the total raised by Admedus up to $28.1 million.
This positions the company to drive sales growth for its lead regenerative tissue product CardioCel®.
The dosing of its Phase II Herpes study is a key milestone and the program is being watched not only by investors but by those afflicted with the condition - worldwide.
Genital herpes affects more than 1 in 6 Americans between ages 14 and 49 according to the Centers for Disease Control in the U.S. WHO estimates the number of people aged 15–49 years who are living with HSV-2 worldwide exceeds half a billion.
Notably, there is currently no cure for HSV-2. The high infection rates make for a large market, which is estimated to be worth up to $6 billion.
The funding will also allow it to continue development of its regenerative tissue portfolio and advance its immunotherapy programs with Professor Ian Frazer.
Share Price Catalysts
- Completion of HSV-2 Phase II enrolment (end 2Q2015);
- Interim Analysis from study (4Q2015); and
- Starting Phase I study for Human Papilloma Virus vaccine.
Regenerative tissue portfolio and CardioCel®
- Increase number of centres using CardioCel® globally;
- Growing sales in the US, Asia & Europe;
- Additional market approvals for CardioCel® in Asian markets;
- Initiation of CardioCel® market expansion studies such as a Tri-leaflet Aortic Heart Valve Repair Study;
- Progress on use of ADAPT® treated tissue in the repair of dura mater, the outer membrane enveloping the brain and spinal cord; and
- Expanded regenerative tissue portfolio.
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