Admedus taps investors for $28m

Biotech company Admedus has initiated a capital raising comprising a placement and rights issue, with the hope of generating up to $28 million to fund ongoing development of various health care programs.

In a statement today, Admedus said it completed a heavily oversubscribed placement to institutional and sophisticated investors to raise $12 million, with shares valued at a discounted 7 cents each.

The company lost 19.3 per cent of its value on the ASX as a result, closing at 7.9 cents per share.

Admedus also said it would also undertake a one-for-seven rights issue at 7 cents per share to raise about $16 million.

Chief executive Lee Rodne said the capital raising would place the company in a strong financial position and allow it to continue building its sales teams in North America and Europe, and ongoing sales activities across the group, as well as making progress in the development of its regenerative tissue product and immunotherapy programs.

“The next 12 to 36 months will be important for Admedus as we grow revenue across the company as well as expand our product development and research and development effort with a goal of continued revenue growth across a number of products,” Mr Rodne said.

Admedus is developing technology to produce therapeutic DNA vaccines for a range of infectious diseases and cancers.

Its CardioCell program, which focuses on tissue engineering and regenerative medicine, is approved in Europe, Asia, the US and Canada, and is being used in Australia.

Morgans acted as lead manager to the placement and rights issue, supported by WG Partners.