Osprey Medical, Inc. plans to raise A$32.5 million through a placement and an entitlement offer of CHESS depositary interests, or CDIs, after receiving commitments from investors.
Under the oversubscribed placement, investors will subscribe for 55,464,076 CDIs, representing 27,732,038 new fully paid common shares, at 40 Australian cents apiece, for expected proceeds of about A$22.2 million.
The placement is expected to settle Aug. 10.
Under the fully underwritten, non-renounceable entitlement offer, eligible investors in Australia, New Zealand, Hong Kong and Singapore may subscribe for 1 new CDI for every 10 CDIs held. The company is offering 25,785,924 new CDIs, representing 12,892,962 new fully paid common shares, at 40 cents apiece, for expected proceeds of about A$10.3 million.
The entitlement offer is expected to close Aug. 25.
The company plans to use proceeds from both transactions to expand its U.S. sales force and initiate a pilot European sale program in Germany. Proceeds will also help fund post-approval market trials, physician-sponsored trials, research and product portfolio development.
Canaccord Genuity (Australia) Ltd. and Bell Potter Securities Ltd. acted as joint lead managers to the placement and entitlement offer, with Evans and Partners Pty Ltd. as co-lead manager. Vesparum Capital is acting as independent capital markets adviser for Osprey Medical.
As of Aug. 3, US$1 was equivalent to A$1.26.