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Highlights:
- PolyNovo launched an equity raise through a non-underwritten institutional placement of AU$30 million.
- Today, PolyNovo’s securities are kept under trading hold until the commencement of normal trading on 24 November 2022.
Today, the medical device maker, PolyNovo Limited (ASX:PNV) has launched an equity raise through a non-underwritten institutional placement of AU$30 million. This equity raise will enable the company to accelerate its growth in the US and other parts of the world, including the newest markets in Canada, India, and Hong Kong.
Meanwhile, the board of PolyNovo has kept its securities under trading halt on ASX today. Normal trading is to begin either from 24 November 2022 or when an announcement is released by the company.
PolyNovo’s shares traded last at AU$2.090 per share on ASX as of Monday (21 November 2022).
Details of PolyNovo’s equity raise
The board of PolyNovo has shared that it is experiencing growth and rising demand for NovoSorb BTM, which had driven the company’s revenue in the September quarter and added an additional AU$5 million to its revenue in September and October. Furthermore, PolyNovo’s trading momentum has also begun to improve in November.
As a result, the company is looking to invest in new growth opportunities and accelerate its growth in the key markets of the US by increasing production capacity by 5x times.
PolyNovo’s tangible growth pipeline includes four major areas of growth, these are:
- Geographical and sales team expansion.
- New indications for NovoSorb.
- New products launch.
- Expansion of production capacity.
PolyNovo’s growth acceleration goal also includes the construction of a new manufacturing and R&D facility adjacent to its existing factory to meet the rising demand for NovoSorb.
Who all are eligible for the equity raise?
The directors of PolyNovo, such as Chairman David Williams, has shown his interest in participating in the equity raise through a conditional placement of AU$3 million. However, the participation of PolyNovo’s director is subjected to shareholders’ approval.
Other than that, eligible retail shareholders will be able to apply for up to AU$30,000 new shares in a non-underwritten share purchase plan (SPP) of up to AU$17 million.
