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Admedus closes rights issue, secures $18.9 million

The company can raise an additional $1.2 million by placing the shortfall within three months.

capital raising concept
The finalisation of the company's recapitalisation plan is this rights issue

Admedus Ltd (ASX:AHZ) closed its partially underwritten rights issue last Thursday receiving $5.37 million worth of applications.

An additional $13.58 million worth of shares will be placed with the underwriters meaning a total of $18.96 million in funding has been secured.

Eligible shareholders were able to subscribe for five new shares priced at 8 cents for every seven existing shares held.

New shares also came with an attaching option exercisable at 8 cents expiring three years from the date of issue.

READ: Admedus appoints Star Bright nominees as non-executive directors

Admedus also has the right to place the shortfall valued at $1.2 million within three months of the closure of the rights issue, being last Thursday.

The new shares and new options issued under the rights offer are expected to be allotted today and begin normal trading tomorrow.

READ: Admedus appoints new chief medical officer to focus on growth opportunities

The rights issue marks an important step in Admedus’ recapitalisation plan that it has been working towards since August 2018.

Funding secured from the capital raising will support Admedus in consolidating and further developing its ADAPT portfolio and position itself for the development of new products in 2019.

ADAPT is a pioneering technology that enables the manufacture of biomaterial scaffolds that mimic human tissue.

It has been used to create scaffolds, such as the next generation collagen scaffold VascuCel, used in cardiac repairs and reconstruction procedures for many years.

Quick facts: Admedus Ltd

Price: 0.064 AUD

ASX:AHZ
Market: ASX
Market Cap: $37.81 m
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Watch

Admedus CEO in New York to update on recent key milestones

Admedus Ltd (ASX:AHZ) CEO Wayne Paterson visited the Proactive Investors New York studio to update on key milestones the company has achieved in the past few months, including receiving European approval on two of its products.

on 03/17/2019

2 min read