Admedus Ltd (ASX:AHZ) has raised about $6 million after securing commitments from institutional and sophisticated investors in a placement at 30 cents per share.
The medical technologies company has also invited existing shareholders to participate in a share purchase plan (SPP).
This offers the opportunity to subscribe for up to $15,000 worth of new Admedus shares at an issue price of 30 cents per share.
READ: Admedus has healthy mix of reliable Infusion earnings and strong revenue growth from ADAPT
Funds raised will enable the company to expand and progress its strategic projects, including the acceleration of its 3D product portfolio from development to commercialisation.
CEO Wayne Paterson said: “The capital raising follows growing interest from sophisticated institutional investors who value Admedus as an exciting and credible investment opportunity recognising the potential of our unique product portfolio.”
Business transformation
Admedus has undergone a dramatic transformation and experienced unprecedented levels of growth during the past 18 months.
The company has delivered record sales and revenue growth across its ADAPT and infusion product lines, and has restructured key business units.
Entry into emerging markets
It has also secured entry into significant emerging markets and expanded product offerings with the introduction of the ground-breaking 3D shaped tissue franchise.
Paterson said: “Since the implementation of our new strategy, the company has worked diligently across all areas to improve efficiencies, reduce expenses and elevate the reputation and credibility of the business within the global medtech sector.”
Admedus recently submitted multiple IP applications in the US as it targets entry into the lucrative TAVR market, currently worth US$3.5 billion and expected to grow to US$5 billion by 2020.
READ: Admedus appoints medtech expert Michael Oswell as vice president, development
“We are only just beginning to explore the full potential of our unique shaped tissue technology with 16 potential new products in the pipeline, each one leveraging the benefits of our clinically-superior ADAPT technology,” Paterson said.
“Momentum continues to build across the business with recent announcements including the appointment of a new VP - Development, applications for additional product patents and the signing of a letter of intent to provide alternative funding for our immunotherapies division.”
