- Electronic healthcare specialist Adherium (ADR) has called a two-day trading halt today as it gets ready to tap investors for a fresh round of funding
- The company has not revealed the details of the raise except that it is planning a share placement to sophisticated and professional investors
- Today’s trading halt will last until Thursday, 18 March, unless Adherium releases the details of the raise before then
- Adherium revealed in January that it had around $3.5 million in cash on December 31, 2020, after spending $3.4 million over the December quarter
- As such, the company had already told investors back then it was planning to raise some fresh funds to continue its operations
- Shares in ADR last traded for 2.1 cents each on Wednesday, March 15
Electronic healthcare specialist Adherium (ADR) has called a two-day trading halt today as it gets ready to tap investors for a fresh round of funding.
While the details of the raise — including how much Adherium plans to raise and for what it will use the cash boost — have not yet been revealed, it seems retail investors won’t have a chance to take part in the funding.
Adherium said this morning it is planning a share placement to sophisticated and professional investors.
Today’s trading halt will last until Thursday, 18 March, unless Adherium releases the details of the raise before then.
The upcoming capital raise likely comes as no surprise to investors, however, given Adherium’s last quarterly financial report, which highlighted just under $3.5 million in available cash on hand at the end of December after quarterly spending of around $3.4 million.
This equates to just one financial quarter of funds available at similar spending levels.
When asked by the ASX if it expects to be able to keep operating moving forward, Adherium said it was “actively engaged in finalising funding from existing shareholders and new entities”.
This was in late-January.
The raise was reaffirmed in Adherium’s half-yearly report for the six months to the end of December 2020, which was released in late-February. In the report, Adherium confirmed that it would need to raise additional capital or seek alternative funding to meet its operating requirements for the year.
Adherium specialises in sensor technology and a cloud-based data platform to provide real-time feedback to people using inhaled medication. This helps manage conditions like severe asthma and chronic obstructive pulmonary disease.
Shares in ADR last traded for 2.1 cents each on Wednesday, March 15. The company has a $14.27 million market cap.