Avita shares slide on $5m placement

Shares in technology company Avita Medical tumbled today on news it had closed a heavily discounted placement to raise $5 million.

In a statement today, Avita said it issued 81.3 million shares at 6.2 cents each to sophisticated and institutional investors.

That sent the company’s share price tumbling by 15.5 per cent to 6.5 cents a share.

Avita said it would offer shareholders the opportunity to participate in a share purchase plan, which has been set at an offer price of 6.2 cents per share and capped at 97.5 million shares.

Chief executive Tim Rooney said the funding would help drive the continued development of the company’s regenerative product platform and would help fund the commercial stage pipeline.

Bell Potter Securities acted as lead manager for the placement.