The placement of 20 million ordinary new shares in the company was conducted at $0.20 per share, a 7 per cent discount to the last traded price of $0.215 per share, and a 10.5 per cent discount to the five-day VWAP of $0.223 as at 10 October 2017.
The capital raising will be conducted under two tranches:
- Tranche 1 – comprising 13,205,266 shares, raising $2.641 million under the company’s existing ASX Listing Rule 7.1 capacity; and,
- Tranche 2 – comprising 6,794,734 shares, raising a further $1.359 million subject to shareholder approval to be sought at the upcoming general meeting.
The company said settlement of Tranche 1 is expected on Friday 20 October, with approval and settlement of Tranche 2 in late November.
The funds raised in the placement will be used for Mente Autism, manufacturing and purchase of additional inventory, investigating potential strategic initiatives and general working capital.
Mente Autism is a clinical-quality EEG device that uses neuro feedback technology to help children with autism spectrum disorder (ASD). Azure Capital Limited was sole lead manager to the equity raising.
Speaking on the placement, Neurotech CEO Wolfgang Storf said, “We are very pleased with the strong response to the placement of new shares from both new and existing investors in the company.
“We are entering what we expect to be a pivotal time for Neurotech and the Mente Autism device. This will include pursuit of further distributorships, completion of the trial as well as ongoing improvements to the Mente Autism device.
“We thank all shareholders for their ongoing support and look forward to building upon this momentum moving forward.”