Medical Developments International (ASX:MVP) has announced a fully underwritten capital raising of $30 million.
The raising is comprised of a $15 million placement and a $15 million pro rata accelerated non-renounceable entitlement offer.
The company said that post-transaction its cash balance will be $49 million which will be used to support its direct sales strategy in Europe, expansion of the Australian business into the emergency and ambulance sectors, as well as further investment in business capability.
The company announced unaudited underlying revenue of $22.4 million in the financial year 2022, representing growth of 37 per cent, and said further growth is expected in 2023.
It said the company's directors, including substantial shareholder David Williams, intend to take up their entitlements in full and in aggregate sub-underwrite up to $1.2 million of the Retail Entitlement Offer.
Chair Gordon Naylor said, “We are pleased with our strong revenue growth in FY22 and expect this to continue into FY23. We believe that there are multiple significant near-term opportunities to grow Penthrox in Europe and Australia, as well as Respiratory.
"With a strong funding position following the capital raising, we look forward to investing to continue to deliver on our growth strategy. I would like to thank my fellow board members for their support in this capital raising and our Chief Executive Officer Brent MacGregor who, with his team, have shown us that our aspirations for the Company are founded in reality.”