AirXpanders Inc. plans to raise A$45 million through a private placement after receiving commitments from investors.
The investors will subscribe to 48,913,044 CHESS depositary interests, representing 16,304,348 class A common shares, at 92 cents per CDI.
The placement will be completed in two tranches with the first consisting of 26,536,500 CDIs, representing 8,845,500 class A common shares. The second tranche will consist of 22,376,544 CDIs, representing 7,458,848 class A common shares, to be issued subject to stockholder approval.
The CDIs subscribed for under tranche 1 are expected to be issued on or around Feb. 3. The CDIs will rank equally with existing AirXpanders interests.
The funds raised from the placement will be used for building inventory for the US market; acceleration of investment for US sales and marketing, including hiring of U.S. sales force; completion of expansion of commercial manufacturing capacity in Costa Rica; and general working capital.
Canaccord Genuity (Australia) Ltd. acted as the sole lead manager to the placement.
As of Jan. 26, US$1 was equivalent to A$1.33.