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Orthocell (ASX:OCC) has announced its receipt of commitments for $17M in funding via placement to bankroll the U.S. launch of Remplir.
Remplir is a skin-like collagen-based warp used in specific wound repairs with a view towards patient nerve regeneration, meaning touch and tactile sensation will work as best as possible following the healing of any injury.
“Surgery to repair damaged nerves is delicate and complicated, and only successful some of the time… Remplir assists in re-joining severed or severely damaged peripheral nerves,” Orthocell puts it on its website.
Already available in Australia, the company has been gearing up to an U.S. launch for some time. On Friday, the company declared U.S. approvals are ‘near.’
“Orthocell remains on schedule to release top-line results from its Remplir US market authorisation study and submit its US 510(K) market authorisation application in Q4 CY24,” the company guided on Friday.
Following the placement, Orthocell will step into 2025 with $35 million in cash. At close on Thursday, Orthocell shares were worth 69cps; they had dropped to 64cps by 11.30am Sydney time Friday.
The placement price was for a notable discount of 60cps; a 5% premium to the 60-day average. Global expansion remains very much on the cards.
“The proceeds from the Placement will be applied towards funding the launch of Remplir in the United States and other key markets including Singapore, Southeast Asia, Canada and the EU/UK,” the company wrote.
Management described the placement as an expediting force.
“This allows us to grow the USA market quicker, invest in volume manufacturing and also speed up the progress of our promising pipeline products. The Board and I would like to welcome the new investors to the register,” Orthocell chair John Van Der Wielen said.
“We are extremely pleased to announce this significant Placement following on from our second consecutive quarter of record revenue.”
OCC last traded at 64cps.
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