Regenerative medicine company Orthocell (ASX:OCC) says it has received firm commitments for a $10.6 million placement from professional and sophisticated investors, including existing shareholders.
The company said the funds raised, which will provide $10 million in new capital net of expenses, in combination with existing cash reserves, will be used to accelerate commercialisation of it CelGro for dental bone, tendon and nerve repair in key markets.
It will also be used to progress key regulatory approvals in the US and other target jurisdictions, and also support continued business development and marketing initiatives.
According to managing director Paul Anderson, “The success of this transaction is an endorsement of Orthocell’s business strategy, progress in commercialising CelGro and the exciting outlook for the Company as it drives it’s leading products into key markets.
"Orthocell is well placed to execute on its partnering strategy, leveraging the CE-mark in the US regulatory approval process and introducing other key indications to market.”
The placement will result in the issue of approximately 26.5 million shares at an offer price of $0.40 per share.