Orthocell to tap investors for $3.5m

Biotechnology company Orthocell will raise $3.5 million, with proceeds put towards its international market expansion strategy.

Under the strategic placement, Orthocell told the market it would issue approximately 9.4 million new fully paid ordinary shares at an offer price of 37 cents per share, with placement shares expected to be allotted on February 28. 

The Murdoch-based company closed trade on Thursday at 43 cents per share, up 9 per cent, following its update.

Orthocell, which specialises in providing regenerative solutions for people battling a variety of soft-tissue injuries, announced on January 15 that former Western Australian governor Kim Beazley - who also served as Australia's ambassador to the US between 2010 and 2016 - would be joining the company's Board as a non-executive director. 

Mr Beazley's appointment follows on from renowned burns surgeon Fiona Wood becoming a non-executive director for Orthocell in November last year. 

Orthocell chairman John Van Der Wielen said the strategic placement had received plenty of interest from notable investors, including Mineral Resources' managing director Chris Ellison.

“The support of these strategic investors is an endorsement of Orthocell’s science, business strategy and progress in commercialising its leading bone and nerve repair products, and the exciting outlook for the Company as it progresses approvals in new key jurisdictions like the US," he said.

"The Board and I would like to welcome the new investors to the register."