ImpediMed raise $14M for clinical trials

• ImpediMed has announced plans to raise nearly $14 million through a one-for-three entitlement offer to fund company growth initiatives and clinical trials
• The offer gives eligible investors a chance to buy one new share for every three shares owned at $0.11 each
• Funds will be used to expand sales and marketing in the US market, software enhancements, and heart failure clinical trials
• ImpediMent shares are selling 4.35 per cent higher than yesterday’s closing price at 12 cents each

ImpediMed has announced plans to raise $14 million through a one-for-three entitlement offer to fund company growth initiatives and clinical trials.

The offer is non-renounceable and fully underwritten and gives eligible investors a chance to buy one new share for every three shares owned at $0.11 each. ImpediMed plans to issue roughly 127 million new shares in the offer to raise $13.9 million. The share price represents a 9.2 per cent discount to the company’s 15-day volume weighted average price.

The funds from the capital raising will be used to fund growth initiatives including the expansion of sales and marketing in the US market, software enhancements, and heart failure clinical trials. ImpediMed is based in Brisbane but has operations running in the US and Europe.

Along with the capital raising, ImpediMed has affirmed financial guidance for 2019 announced earlier this month, expecting to report revenues between $7 million and $10 million in the 2020 financial year.

ImpediMed designs and manufactures medical devices using bioimpedance spectroscopy technologies in non-invasive clinical assessment and the monitoring of tissue composition and fluid status in patients.

More specifically, ImpediMed creates and sells devices designed to help with early detection of conditions like heart failure and lymphoedema.

ImpediMed shares are slightly up today, selling 4.35 per cent higher than yesterday’s closing price. Shares are worth 12 cents each in a $45.58 market cap as at 12:34pm AEST.