Perth-based health care equipment company Medec has announced plans to raise $1.8 million, by way of a private placement, to help the company pursue future acquisitions.
The placement will see up to 8.5 million shares at 21.5 cents per share directed towards strategic international investors, and the issue will be managed by international investment bank Gebhard & Co Wertpapierhandelsbank AG.
Medec chief executive Josef Plattner said the target group of international investors was well connected in the European health care, wellness and fitness industry, and that he expected their support as Medec attempts to grow it European operations.
"The inverstors have also agreed to support Medec in structuring our operation to meet the requirements of our growing business in Europe," he said.
The share placement is expected to increase the company's cash reserves from its current level of $4.1 million to $6 million.
Medec listed on the Australian Stock Exchange in October 2003, and its shares are also traded on the German Stock Exchange - having listed there in February 2005.
Its major Market is Europe, and it has 15 international distributors that display the company's products.