Avita Medical in $11m raising

Perth-based Avita Medical has announced plans to raise up to $11.4 million to fund the company’s expansion into the US market.

Avita has launched a two-for-nine rights issue, with about 127.3 million shares up for grabs at a price of 9 cents each.

The offer has been partially underwritten by Morgans Corporate, which has acted as sole lead manager to the raising, for up to $5 million.

Avita chief executive Adam Kelliher said the company was appreciative of the committed support from its shareholders.

“Avita is on the move, and we have some crucial upcoming milestones as we build value based around our unique regenerative medicine approach,” he said.

“Raising more capital will enable us to keep our commercial plans on track, as well as delivering the clinical data package showing our treatment approach is safe, powerful and effective.

“In the case of the crucial FDA burns trial, we have completed the effectiveness section of this trial at all seven US burns centres, and have now entered a safety-observation period, so we feel the most of the hard work for the trial is now behind us.”

Avita shares were 14 per cent lower to 9.9 cents each at 1pm.