- SomnoMed (SOM), a company working in diagnostics and treatment for sleep disorders, has completed the second stage of a $15.5 million capital raising
- The company has now completed the retail component of its entitlement offer, securing $5.8 million
- It followed an institutional component which raised $9.7 million
- SomnoMed has operations in 28 countries and, to varying degrees, all of which has been impacted by COVID-19
- Due to the unknown duration of those disruptions, the Board decided to undertake the capital raising
- SomnoMed shares gained 16.3 per cent by market close to be worth $1.32 each
SomnoMed (SOM), a company working in diagnostics and treatment for sleep disorders, has completed the second stage of a $15.5 million capital raising.
The company has now completed the retail component of its fully underwritten entitlement offer, securing $5.8 million. Under the one for 3.24 pro-rata entitlement offer, shares were issued at a price of 80 cents per new share.
Eligible retail shareholders took up 5.4 million shares while the remaining 1.9 million shares will be allocated to sub-underwriters.
The first component of the entitlement offer was the institutional component which raised $9.7 million.
SomnoMed has operations in 28 countries and, to varying degrees, they have all been impacted by COVID-19 according to Chairman Dr Peter Neustadt.
“Many of our medical and dental practices are subject to lockdowns or held to commitments to use their facilities and staff only for the diagnosis and treatment of COVID19 patients or conditions of high urgency.”
“It is impossible to predict the length, the depth and the extent of this crisis. However, we have to assume that it will take months before we see this crisis abating and life returning to some normality.”
Due to the unknown duration of these disruptions, the Board decided to undertake the capital raising to secure the lerm-term future of the company.
Further measures have also been put in place to reduce expenditure, including forgoing director fees and reducing staff and executive pay.
SomnoMed shares gained 16.3 per cent by market close to be worth $1.32 each