After the market close on Friday, AVITA Medical Ltd (ASX: AVH) confirmed the opening of Share Purchase Plan to raise $3.0 million initially.
The company stated that the Share Purchase Plan on 4 December is now open from the next working day, i.e., 17 December 2018. Through this Share Purchase Plan, AVITA Medicals has offered the eligible shareholders to purchase up to a minimum of $1,000 at a purchase price of $0.08 per share. But each shareholder has the right to subscribe for a maximum of $15000 worth AVITA Medical shares.
Medical technology company, AVITA Medical targets to raise total $3.0 million from this SPP, however the company at its Board discretion may decide to raise additional funds for a maximum aggregate amount of $5.0 million. The company plans to use these funds for marketing and sales efforts to add a financial arm to the launch of RECELLÂ® System in the U.S. market. Whereas, meeting the companyâs working capital requirement and enhancing clinical research and development are the others key areas where the company proposes to use its fundraisings.
Moreover, the raising through Share Purchase Plan comes after $40.0million institutional placement offer. In the market release dated 4 December 2018, the company announced that it had received commitments for $40.0 million from international institutional investors across the US and Australia. The placement will be in two tranches, first, the settlement of $24.5 million without the need for prior shareholdersâ approval and the second, including the acquisition of shareholdersâ approval to settle remaining $15.2 million. For obtaining shareholdersâ approval, the company has scheduled Extraordinary General Meeting to be held in January 2019.
Chief Executive Officer of AVITA Dr. Michael Perry stated, âProceeds from this placement will underscore the companyâs ability in releasing the opportunity provided by the FDA approval to the RECELL System.â
RECELL System provides an innovative method in the treatment of burns. It uses patientsâ skin to produce Spray-On Skinâ¢ Cells which in turn reduces the amount of donorsâ skin requirement. AVITA told that RECELL System is designed in such a manner that it can be used independently at the point of care or could be combined with autografts depending on the depth of the burn injury.
Currently, the company is in progress of mailing SPP Booklet to its eligible shareholders. The Booklet read that Share Purchase Plan will close on 7 January 2019 and the new shares under SPP will be issued subsequently on 10 January 2019.
In the last trade, AVITA Medicalâ stock concluded its day flat on the Australian Securities Exchange. However, 475,961 shares of AVITA changed hands as at 14 December 2018.
Further, in the last 5-day trade, AVH shares have witnessed a movement of 1.25% to close at $0.079. And the stock has climbed 26.98% over the past one year.
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