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Admedus secures $8.6 million as Sio Partners becomes substantial holder

Funds will support the company’s plans to develop its ADAPT portfolio and position itself to develop new products in 2019.
Admedus secures $8.6 million as Sio Partners becomes substantial holder
The company saw growth in all regions in the December quarter

Admedus Limited (ASX:AHZ) has secured a further $8.6 million in funding through shares placed to an initial substantial holder in its underwriting agreement from late November.

The new substantial holder Sio Partners and Capital Management have obtained 131,120,851 fully paid ordinary shares in Admedus, representing a 22.2% interest in the bio-tech company.

The company’s partially underwritten renounceable pro-rate entitlement offer was completed last quarter and raised a total of $19 million.

Admedus had a closing cash balance of $12 million at the end of last year.

READ: Admedus directors show faith in company by participating in rights issue

Revenue for the quarter was $6.5 million, nearly half made up by ADAPT sales which represents growth of 46% over the prior corresponding period.

This has been driven by double-digit growth in all regions as well as favourable US dollar foreign exchange movements.

The North American business grew by 61% and featured the launch of Admedus’ expanded CardioCel 3D product range.

ADAPT in Europe grew 17% and Admedus’ Infusion division delivered sales of $3.5 million, growing 17% excluding the termination of its GO Medical distribution agreement.

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

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.

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

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