Regenerative medicine company Orthocell (ASX:OCC) has secured commitments from new and existing professional and sophisticated investors in Australia and Hong Kong to raise $4 million.
The placement will comprise the issue of 10,000,000 fully paid ordinary shares at an issue price of $0.40 per share, being a 10 per cent discount to the 5 day VWAP of the company’s shares traded on ASX in the 5 trading days prior to 2 December 2016.
The company said the funds raised will be used to progress its portfolio of products and for working capital purposes.
According to managing director Paul Anderson, “The company is pleased to have been able to successfully raise $4 million which will assist us to continue the development of our unique tendon and soft tissue regeneration products and we welcome these new investors onto the register.
“We would like to welcome all new investors and thank our existing investors who participated in the placement for their support and commitment to our vision of becoming the leading regenerative medicine company for soft tissue repair and regeneration”.
No shareholder approval is required prior to the issue of the shares under the placement which will be made from the company’s existing Listing Rule capacities.
The company’s products include its Autologous Tenocyte Implantation (Ortho-AT®) cell therapy for tendon regeneration and its other major product, Celgro, a collagen based medical device used for tissue repair and healing in a variety of orthopaedic, reconstructive and surgical applications.
Orthocell said it is undertaking clinical studies comparing Ortho-ATI to surgery and using CelGro to augment repair of the rotator cuff tendon within the shoulder, as an augment to guide and promote bone regeneration, as well as an augment to cartilage repair within the hip joint and peripheral nerve repair.