Mesoblast boosts cash through private placement

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Mesoblast (ASX:MSB) has raised US$110 million (A$138 million) via the issue of 60 million shares in a private placement led by a US investor group.

The company, which is developing allogeneic cellular medicines for inflammatory diseases, has raised the funds through the issue of 60 million shares in a private placement. The shares were issued at a price of A$2.30 per share. This represents a 6.5 per cent discount to the price at the close of trading on 25 February.

Mesoblast said the investors also received warrants to acquire a further 15 million shares at a price of A$2.88 per share, which is a 25 per cent premium to the placement price, that may raise up to a further A$43.2 million (US$34 million at the current exchange rate) on or before 15 March 2028.

Chief executive Dr Silviu Itescu said, “We are pleased to receive a strategic investment from the principals of SurgCenter Development, one of the largest private operators of ambulatory surgical centers in the US specializing in spine, orthopaedic and total joint procedures. We expect the deep healthcare knowledge and expertise of this investor group will be of great benefit to the company.

"The network and infrastructure of surgeons and ambulatory centers operated by SurgCenter may provide unique synergies to facilitate development and market access for rexlemestrocel, if approved, in patients with chronic lower back pain.”