CardieX completes $2.5m share placement

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Medical technology company CardieX (ASX:CDX) says it has successfully completed a $2.5 million placement offered to sophisticated investors at $0.03 per share with a one-for-five free attaching listed option.

The company, which said Sixty Two Capital acted as lead manager to the placement, also said it received strong demand from new sophisticated, wholesale and existing investors.

New ordinary shares will be issued at an issue price of $0.03 per share with a one-for-five free attaching listed option that has an exercise price of $0.05.

The share issue price of $0.03 represents a discount of less than 4 per cent to the last traded price of CardieX prior to the company’s application for a trading halt.

“We are pleased with the significant interest we received from sophisticated, and wholesale investors through this Placement, particularly during the current uncertain period, and that the placement has been well supported largely by new shareholders who have a shared vision for the strategic focus and unique opportunity of CardieX," said CEO Craig Cooper.

"It is pleasing to see this vision shared by new shareholders with a longer-term view of CardieX’s value proposition. We now have a stronger share register with a wider representation, and a stronger balance sheet to take us forward through this period of scaling up our previously announced plans to move forward with our new product development program.”

The company also announced plans to hold an Extraordinary General Meeting at which it will seek shareholder approval to ratify the placement of C2 Ventures (related entity of Chairman Niall Cairn’s and CEO Craig Cooper) of $500,000 in additional capital that was previously announced in December 2019.