Soft-tissue regeneration company Aroa Biosurgery (ASX:ARX) has announced the successful completion of a $47 million placement to institutional and sophisticated investors.
The company said it was also pleased to announce the launch of a share purchase plan (SPP) to existing eligible shareholders through which it is seeking to raise up to $5 million.
CEO Brian Ward said, “We are very encouraged by the level of support investors have shown for our strategy as we look to capitalize on the significant market opportunity within our product portfolio and underpin our growth in the US while accelerating and broadening our R&D pipeline to bring more innovative, high-quality products to the market.
“Following completion of the capital raisings, we will be debt free with approximately NZ$65 million in cash reserves, and fully funded through to profitability. This puts AROA in a strong position to grow market share across our product portfolio.”
“We thank our existing shareholders for their support and welcome new shareholders to the register. This investment supports our mission of ‘unlocking regenerative healing for everybody’.”
Under the placement, AROA will issue approximately 40.3 million new fully paid ordinary shares). The Placement was conducted at a fixed price of $1.165 per share, representing a 1.7 per cent discount to the closing price of the company’s shares on ASX on 26 July 2021 and a 4.6 per cent discount to the 5-day VWAP of AROA shares on the ASX up to 26 July 2021.
The company proceeds from the placement and from the SPP are intended to be focused on funding incremental investment in AROA’s US commercial operations and in the company’s R&D and product pipeline as well as increased cash on the balance sheet.
Under the SPP, AROA’s existing eligible shareholders will be given the opportunity to subscribe for additional shares placement price of $1.165 per share, up to a maximum application amount of $15,000 per shareholder in $1,000 increments.