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- LBT Innovations (LBT) has received firm commitments to raise $8 million via a share placement, adding several new institutional investors to the register
- The Australian medical technology company has also launched a share purchase plan (SPP) with hopes to raise another $1 million
- Funds from the placement and SPP will be directed towards accelerating commercialisation activities in Europe, including under a new marketing partnership with Beckman Coulter
- Along with existing cash reserves, the capital raising will provide the company with a funding runway into 2022
- LBT shares are trading flat for 19 cents each at open
LBT Innovations (LBT) has received firm commitments from sophisticated and professional investors to raise $8 million via a share placement.
The placement
The Australian medical technology company received these commitments from both existing shareholders and several new institutional investors.
Under the placement, LBT will issue 50 million new fully paid ordinary shares at an issue price of 16 cents each which represents a 21.9 per cent discount to the five-day volume-weighted average price.
The issue will not require shareholder approval, as the shares will be issued under the company’s existing placement capacity around July 15, 2020.
The Share purchase plan
LBT has also launched a share purchase plan (SPP) targeting an additional $1 million but has reserved the right to accept oversubscriptions.
Eligible shareholders will be able to subscribe for up to $30,000 worth of new shares for 16 cents per share.
Use of the funds
Funds from the placement and SPP will be directed towards accelerating commercialisation activities in Europe, including under a new marketing partnership with Beckman Coulter that was announced on Tuesday.
Additionally, the funds will support ongoing commercialisation activities in the United States, the development of the Automated Plate Assessment System (APAS) analysis module and provide working capital.
Along with the LBT’s $7.1 million in cash as at June 30, 2020, the capital raising will provide the company with a funding runway into 2022.
LBT shares are trading flat for 19 cents each at market open.
