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Oncosil Medical (ASX:OSL) falls well short on fully-underwritten entitlement offer

Health Care
ASX:OSL      MCAP $13.53M
26 May 2020 13:30 (AEST)
Oncosil (ASX:OSL) - CEO, Daniel Kenny

Source: BellDirect

Meditech company Oncosil Medical (OSL) will raise around $5 million from a fully-underwritten entitlement offer, despite falling almost 40 per cent short on subscriptions.

The company had offered over 56 million new shares at a price of nine cents each, which represented a 19.3 per cent discount to the five-day volume-weighted average price (VWAP) to April 28 when the capital raise was first announced.

The offer was substantially undersubscribed though, with only around $3.1 million of the target raised from shareholders.

Underwriter Bell Potter will now either subscribe for or place the remaining 21,628,774 shares, which were not taken up under the offer.

While the company may be somewhat deflated at the lack of interest in the one-for-eleven non-renounceable entitlement offer, it has still reached its fundraising goal of $19 million from the entitlement offer and institutional placement.

The company says the money raised will drive commercialisation activities across Europe, Asia and the U.S., and fund ongoing clinical trials.

Oncosil is trading two per cent higher today at 10.2 cents per share as at 12:05 pm AEST.

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