Medibio (ASX:MEB) to raise $3.5M via placement and SPP

• Health technology company Medibio (MEB) plans to raise up to $3.5 million through a capital raise and share purchase plan
• The company has received commitments for a $3 million placement of around 333.3 million new fully paid ordinary shares
• Medibio will also conduct a $500,000 share purchase plan, which is expected to be fully underwritten
• Proceeds will fund a depressive burden trial, MEBsleep and ilumen product commercialisation activities and consumer app development
• Medibio is up 11.11 per cent and trading at 1 cent per share

Health technology company Medibio (MEB) plans to raise up to $3.5 million through a capital raise and share purchase plan (SPP).

The company has received commitments for a placement of 333,333,333 new fully paid ordinary shares in Medibio. At an issue price of 0.9 cents per share, the placement will produce proceeds of $3 million for the company.

Medibio will offer investors one free attaching option for every four new shares issued at 1.5 cents per option. The options will allow the holders to be issued with one fully paid ordinary share in the company.

Medibio will conduct the placement in 2 stages, the first of which will see the issuance of a third (222,222,222) of the new shares. The remaining 111,111,111 shares will be offered during the second stage.

In addition to the $3 million placement, the company will also conduct a $500,000 share purchase plan, which is expected to be fully underwritten by the Lead Manager. Shares from the SPP will be offered at the same issue price in the placement, and with the same free attaching option for every 4 SPP shares issued.

Medibio’s Managing Director, Claude Solitario is pleased that the placement was strongly supported by both existing shareholders and new investors.

“We’re also pleased to offer existing shareholders the chance to subscribe, subject to shareholder approval, for shares and be offered options on the same terms as the placement,” he said. 

“These funds will allow us to progress the depressive burden trial; accelerate commercialisation activities for the company’s MEBsleep and ilumen products; and complete the development of the consumer app in preparation for its commercial launch later this year,” he added.

Medibio is up 11.11 per cent, trading at 1 cent per share at 1:21 pm AEDT.