- Oventus has seen shares jump more than 20 per cent today after announcing a $9.3 million capital raising plan
- $7 million will be raised through a share placement and an additional $2.3 million through a one-for-20 entitlement offer, both at 38 cents per share
- The funds will be used to support the rolling out of Oventus’s sleep apnea treatment technology and new “lab-in-lab” business model
- Oventus shares closed today at 56 cents a piece in a $59.33 million market cap.
Aussie medical company Oventus has seen shares jump more than 20 per cent today after announcing a $9.3 million capital raising plan.
The company will raise $7 million through a share placement and an additional $2.3 million through a one-for-20 entitlement offer. Funds will be used to support the widespread rollout of the company’s O₂ Vent sleep apnea treatment technology.
Both the placement and the entitlement offer price shares at 38 cents a piece. This represents a discount of 18.3 per cent to the company’s last closing price, and a 14.7 per cent discount to the five-day volume weighted average price.
The funds will be used to support the rolling out of Oventus’s flagship technology, the O₂ Vent Optima and the ExVent valve accessory.
The O₂ Vent technology acts as an alternative sleep apnea treatment for patients who can’t tolerate conventional continuous positive airway pressure (CPAP) therapy.
Worn like a mouthguard while sleeping, the O₂ Vent helps open up airways passages and bypass nasal congestions to help sleep apnea sufferers breath.
The ExVent accessory is an attachable valve that slots into the O₂ Vent device and acts as a “virtual mini CPAP” inside the device, without the need for machines and wires.
The roll-out of these products supports the company’s new “lab-in-lab” business model, which was solidified earlier this month when Oventus partnered with Carestream Dental and Lyon Dental.
This business model uses Oventus’ unique sleep apnea treatment and digital workflow as a channel to connect sleep physicians and dentists, who both play a crucial role in diagnosing and treating sleep apnea.
Oventus Chairman Mel Bridges said the successful capital raising is an endorsement of both the company’s technology and its business model.
“Oventus is at a pivotal time in its history. We are starting to see strong support from both dentists and sleep physicians for our O2Vent sleep treatment platform,” Mel said.
The placement and entitlement offer will see the issue of nearly 25 million new Oventus shares.
Oventus shares closed 20.43 per cent up today, trading for 56 cents a piece in a $59.33 million market cap.