Avita raises $10m for ReCell rollout

Regenerative medicine company Avita Medical has raised $10 million from investors to support the commercialisation of its ReCell device, which is being trialled by a US government agency.

Fiona Wood-founded Avita will place about 107.7 million shares to sophisticated and institutional investors at 9.3 cents each, representing a 20 per cent discount to the company’s five-day volume-weighted average price (VWAP), and a 15 per cent premium to its 30-day VWAP.

Most of the shares were taken up by existing investors including Hunter Hall International and One Funds Management, while Avita welcomed new shareholders Oceana Capital and DMP Asset Management.

Avita will use the funds to support the execution of a potential $US53.9 million contract with US federal disaster preparedness agency, the Biomedical Advanced Research and Development Authority, which has already committed $US16.9 million for an initial trial of the company’s ReCell autologous cell harvesting device, which treats thermal burn injuries.

“These investors have indicated that they have been impressed with the clinical trial strategy and the securing of the Barda contract, and thus decided the company is worthy of continued support,” Avita chief executive Adam Kelliher said.

“We also note that this vote of confidence for Avita has come during a volatile and difficult period in the capital markets.”

Lake Street Capital Markets acted as lead agent for the placement, while Griffin Securities acted as co-placement agent.

Avita shares closed 12.5 per cent lower to 10.5 cents each.