Admedus Ltd (ASX:AHZ) has opened a 1:9 fully underwritten rights issue to raise $8.3 million priced at $0.33.
The rights issue will close on 29 August 2016 and follows the recently completed placement of $10 million.
Healthcare company, Admedus, will use the funds raised from the placement and the rights issue for its corporate restructure, with the majority allocated for working capital.
Admedus is focused on continued growth of sales across the company and is expecting at least a 50% growth in revenue in the 2017 financial year, along with expanding its near market product portfolio.
The company is targeting sustainable profitability in FY18. Earlier in the month Admedus revealed that it had grown its FY16 sales to $14.1 million, up 40% on FY15 sales.
Admedus is also well advanced in its restructuring and cost reduction initiatives.
Admedus is developing multiple revenue streams and building a global healthcare company through CardioCel heart valve patch sales, infusion product sales and its immunotherapy programs.
Admedus' flagship product is CardioCel®, a bio-engineered tissue scaffold to repair congenital heart defects, and expanding into the heart valve market.
CardioCel is becoming a surgeon-preferred biomaterial for heart valve repair surgeries.
It represents a disruptive technology in the $2.5 billion heart valve repair and replacement market, which is dominated by products commercialized by large medical device companies.
It is now being sold in Canada, Australia, Asia, the Middle East, and North Africa, covering 135 medical centres.
The Admedus infusion portfolio has over 800 customers providing hospital-wide infusion solutions across the Australian and New Zealand healthcare systems.
Beyond CardioCel and infusion sales, Admedus is developing a DNA-based therapeutic vaccine for HSV-2 and HPV.
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