ResApp raises $12.5m

20/04/2016 - 11:00

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Medical technology company ResApp Health has tapped investors for a $12.5 million capital raising to help push its technology into the US market.

ResApp raises $12.5m
ResApp chief executive Tony Keating.

Medical technology company ResApp Health has tapped investors for a $12.5 million capital raising to help push its technology into the US market.

ResApp raised the funds through the placement of 62.5 million shares at 20 cents each to new and existing institutional and sophisticated investors.

The proceeds of the raising will be used to expedite US Food and Drug Administration approval for its adult diagnostic test by undertaking clinical studies, as well as pushing for the use of its products in clinics and emergency departments.

“With the high levels of accuracy that we have achieved in our clinical studies to date, the market opportunity for ResApp’s technology has grown significantly larger today than it appeared to be when we listed nine months ago,” ResApp chief executive Tony Keating said in a statement.

“Servicing the telehealth industry was our original goal and this remains an enormous opportunity, but we have since received great interest from practitioners in emergency rooms, clinics and outpatient settings where the great majority of patients are treated.

“We have also seen telehealth growing rapidly in Europe and Asia and we plan to respond by filing for regulatory approval in these countries and developing partnerships to enter their markets.”

Mr Keating said the funds raised would allow the company to address those opportunities and to advance the company’s commercial potential.

Jett Capital Advisors, Empire Capital Partners and CPS Capital Group acted as joint lead managers to the placement.

For Jett Capital, the ResApp raising is its second WA tech deal this month, after being lead manager on rent.com.au’s $5.4 million capital raising.

ResApp shares were unchanged at 24.5 cents each at 11am.

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