- Regenerative medicine company Orthocell (OCC) has received firm commitments for a $13 million placement
- A total of 26 million shares will be issued to professional and sophisticated investors at a price of $0.50 per share
- The company will also offer a share purchase plan for eligible shareholders to raise an additional $5 million
- Funds raised will be used to accelerate regulatory approvals for CelGro, commercialise Orthocell-ATI, marketing initiatives and general working capital
- Orthocell is currently down 8.85 per cent with shares trading for 51.5 cents apiece
Regenerative medicine company Orthocell (OCC) has received firm commitments for a $13 million placement.
A total of 26 million shares will be issued to professional and sophisticated investors at a price of $0.50 per share.
The company will also offer all exisiting eligible Australian, New Zealand and Hong Kong shareholders the right to participate in a share purchase plan to raise an additional $5 million also at $0.50 per share.
However, shareholders are only able to purchase up to $30,000 worth of shares in the company.
Funds raised from the placement and share purchase plan will be primarily used to accelerate regulatory approvals and commercialisation of CelGro, advance the development and commercialisation of Ortho-ATI, support continued business development, and general working capital.
CelGro is a unique collagen medical device that increases tissue repair and regeneration.
It has been shown to increase the repair of the rotator cuff tendon in the shoulder and to assist in the re-joining of secured or damaged peripheral nerves.
This money will help Orthocell commercialise CelGro into the U.S., E.U. and Australia as well as regulatory approvals, establishing commercial infrastructure and execution of the marketing strategy.
Ortho-ATI is a cell therapy for the treatment of chronic degenerative injuries and it addresses a significant unmet clinical need for a safe, effective and non-surgical solution.
The treatment uses each patient’s own tendon-derived cells to stimulate tendon regeneration and is delivered via ultrasound guided injection under local anaesthetic.
It accelerates the repair of tendon tissue, is more cost effective than surgery and has an 82 per cent success rate in treating chronic tendon injuries.
The money raised will aid in the commercialisation into the U.S. with collaboration partner J&J, or other parties, focusing on completion of Australian Ortho-ATI vs Corticosteroids clinical study.
“The success of this transaction is an endorsement of Orthocell’s business strategy, progress in commercialising CelGro and the exciting outlook for the company as it drives its leading products into key markets,” Orthocell Managing Director Paul Anderson commented.
“Orthocell is well placed to further progress regulatory approvals, establish commercial infrastructure and execute on its partnering strategy delivering significant shareholder value in the near term,” he added.
Orthocell is currently down 8.85 per cent with shares trading for 51.5 cents apiece at 1:49 pm AEDT.