12/05/2014 - 11:39

Admedus raises $8m for CardioCel

12/05/2014 - 11:39

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Biotech company Admedus has completed an oversubscribed $8 million share placement as it looks to push marketing for its CardioCel regenerative tissue product in Europe and the US.

Admedus raises $8m for CardioCel

Biotech company Admedus has completed an oversubscribed $8 million share placement as it looks to push marketing for its CardioCel regenerative tissue product in Europe and the US.

Admedus, formerly known as Allied Healthcare, issued about 80 million shares at 10 cents each to professional and sophisticated investors.

The issue price represents a 20 per cent discount to the company's last closing price. 

It also plans to launch a share purchase plan for existing investors at the same issue price.

The company counts Fortescue Metals Group chairman Andrew Forrest as a cornerstone investor.

Mr Forrest holds a stake of 14.4 per cent in the company through his Minderoo Group private investment vehicle.

Admedus chief executive Lee Rodne said the capital raising would be used to support expanding sales teams in Europe and the US, with the aim of almost doubling its number of key centres in those markets to 15 over the next 12 months.

It will also allow the company to fund post-market studies to expand the use of CardioCel in cardiovascular surgical applications.

"The next 12 to 36 months are important for Admedus as we continue to leverage off the recent marketing approvals of CardioCel and grow our revenues," Mr Rodne said.

Morgans was lead manager to the placement with support from WG Partners. Baillieu Holst acted as co-manager.

Admedus shares fell on news of the discounted share placement, trading 14 per cent lower at 10.7 cents at 11:35am WST.

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