AVITA Medical (ASX:AVH), a global regenerative medicine company, has announced an institutional placement of $40 million to fund the marketing and sales effort to support US market launch of the RECELL System, clinical and research and development to facilitate pipeline advancement, and general working capital requirements.
Avita says it has received commitments from Australian and international institutional and sophisticated investors for the placement at an issue price of $0.080 per share.
The placement to occur in two tranches. Tranche 1, totalling $24.5 million, is expected to settle on 7 December 2018 without the need for prior shareholder approval. Settlement of Tranche 2, totalling $15.2 million, is subject to shareholder approval at an extraordinary general meeting to be held in January 2018.
“The recent US approval to the RECELL System for the treatment of burns was a transformative event for AVITA, and we appreciate the support of our shareholders as we advance to the U.S. market launch,“ said CEO Dr Michael Perry. “Proceeds from this placement will ensure that we are positioned to fully realize the opportunity provided by the FDA approval and allows us to advance our pipeline beyond burns in additional high-value areas such as the treatment of traumatic wounds and vitiligo.”