Mesoblast Ltd. completed a fully underwritten institutional placement of 26.25 million new shares, priced at A$2 per share, to global institutional investors.

The company plans to use the proceeds of about US$40 million for its ongoing phase 3 clinical programs including chronic heart failure, and for manufacturing requirements related to product commercialization.

Bell Potter Securities Ltd. acted as lead manager and underwriter to the placement.

As of March 24, US$1 was equivalent to A$1.31.