Australian regenerative medicine company AVITA Medical (ASX:AVH) has announced an institutional placement of $120 million to fund pipeline development of new indications, including optimising support for clinical trials and development projects, as well as the company’s US commercial growth strategy.
The company said it has received commitments for $120 million at an issue price of $0.59 per fully paid ordinary share. This represents a 7.2 per cent discount to the 30-day VWAP, and a 14.5 per cent discount to the last closing price on 8 November 2019.
The placement will occur in a single tranche and issue 203,389,831 shares to international and Australian sophisticated investors under its 15 per cent placement capacity.
“We are grateful for the confidence and conviction of the investors who have joined us in our mission to transform burn care with our revolutionary RECELL System and to promptly execute on our pipeline of add-on indications,” said CEO Dr Mike Perry.
“This financing reflects our shared excitement for, and strong confidence in, AVITA Medical’s myriad near-term growth opportunities. These include trauma/soft tissue reconstruction, vitiligo, our next generation RECELL device to facilitate use of the RECELL System in the outpatient setting, and pediatric scald wounds, as well as efforts to enable research programs to support the advancement and extension of our existing intellectual property.
"Through diligent and focused execution on our highly de-risked pipeline of new indications, we have the opportunity to access the full potential of our innovative regenerative medicine platform to advance patient care that addresses unmet medical needs, while aggressively growing our top line revenues and ultimately building a robust self-sustaining business.”