- Medical technology company Osteopore (OSX) has received binding commitments from sophisticated and institutional investors to raise $8.5 million
- The single tranche placement will result in the issue of over 16 million new ordinary shares at 53 cents each
- The funds will be used for business and product development and will support ongoing clinical trials
- Additionally, the company will issue three million options exercisable at $1.20 to the joint lead managers of the placement
- Osteopore shares are down 4.17 per cent, trading for 69 cents
Osteopore (OSX) has received binding commitments from sophisticated and intuitional investors to raise $8.5 million.
The single tranche placement will result in the issue of 16,037,736 new ordinary shares at $0.53 per share.
The placement price represents a 13.1 per cent discount to the last traded price of 0.61 cents and a 15.4 per cent discount to the 15-day volume-weighted average price.
The medical technology company said the placement doesn’t require shareholders approval as it is within its existing capacity and is expecting the issue and trading of new shares on August 27.
The funds from the placement will be used to develop the business and its products, support ongoing clinical trials for dental and orthopaedic application of its technology and assist with complementary technologies that support its core business strategy.
Osteopore believes that with both placement funds and existing cash reserves, it is well funded to meet future demand.
Additionally, the company will issue three million options, exercisable at $1.20 and expiring in August 2023, to the joint lead managers of the placement, E&P Corporate Advisory and ACNS Capital Markets.
Osteopore shares are down 4.17 per cent, trading for 69 cents at 2:41 pm AEST.