AVITA Medical’s Recent Equity Raise Signals Growth Ahead

AVITA Medical Successfully Completes Equity Placement
AVITA Medical, a frontrunner in the wound care industry, recently announced a significant milestone in its growth trajectory with the completion of a private placement of approximately 17.2 million new CHESS Depositary Interests (CDIs) on the Australian Securities Exchange (ASX). This successful funding effort has raised around US$15 million, translating to about A$23 million.
Details of the Placement
The newly issued CDIs have an offer price of A$1.32 each, which is an 11% discount from the last closing price of A$1.48 prior to the placement. This modest discount has attracted substantial interest among both new and existing investors, demonstrating confidence in the company's strategic direction and plans for growth. MST Financial Services Pty Limited served as the sole lead manager of the placement.
Allocation of Funds
The proceeds from this private placement are earmarked for enhancing the company's working capital, thereby providing ample strategic flexibility to support the ongoing development of AVITA Medical's therapeutic acute wound care portfolio. This financial injection is anticipated to sustain operations and facilitate growth until the company achieves free cash flow in the upcoming years.
CEO’s Insights on the Placement
Jim Corbett, the Chief Executive Officer of AVITA Medical, expressed optimism regarding the response to the placement, stating, "The strong support we received in this Placement reflects growing confidence in our strategy and the transformative potential of our therapeutic acute wound care portfolio." He also extended appreciation to both new Australian shareholders and current investors, reinforcing the importance of their continuous support.
New CDIs and Trading Timelines
The settlement for the new CDIs under this placement is projected for August 19. Following this, the new CDIs will be allotted and expected to begin trading on the ASX shortly thereafter on August 20. The new CDIs will hold equal rank with existing CDIs on issue, ensuring parity among shareholders.
About AVITA Medical
AVITA Medical, Inc. is a pioneering entity in the therapeutic acute wound care market. Their flagship offering, the RECELL® System, has been approved for burns and trauma applications, allowing for innovative treatment methods that utilize patients' own skin to expedite healing. Aside from the RECELL® System, AVITA holds exclusive rights to market several other products such as PermeaDerm®, a biosynthetic wound matrix, and Cohealyx™, a collagen-based dermal matrix.
Internationally, the RECELL System is recognized for its efficacy in promoting skin healing for a variety of wounds. It's TGA-registered in Australia, holds a CE mark in Europe, and has gained PMDA approval in Japan, thereby reflecting its global impact on wound care.
Frequently Asked Questions
What is the purpose of AVITA Medical's recent equity raise?
The recent equity raise aims to boost working capital and support ongoing growth initiatives within the company's wound care portfolio.
Who acted as the lead manager for the equity placement?
MST Financial Services Pty Limited served as the sole lead manager for the private placement of CDIs.
How much capital was raised through this placement?
The placement raised approximately US$15 million, which is approximately A$23 million.
When will the new CDIs begin trading?
The new CDIs are expected to commence trading on the ASX on August 20, following their settlement on August 19.
What innovative solutions does AVITA Medical provide?
AVITA Medical is known for its advanced therapeutic solutions for acute wound care, notably the RECELL® System that promotes accelerated healing by utilizing patients' own skin.
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