Osprey Medical Announces Oversubscribed A$28 Million Private Placement
04 August 2016 - 10:00PM
Business Wire
Highlights
- Commitments received from an
oversubscribed private placement to sophisticated and institutional
investors raising approximately A$28 Million at an issue price of
A$0.28 per CDI
- Proceeds to be used primarily as
expansion capital to accelerate Osprey’s commercialisation efforts
in the United States
- Security Purchase Plan to be offered to
existing holders of CDIs at same issue price, capped at A$1
Million
Osprey Medical, Inc. (ASX:OSP) (Osprey or Company)
today announces that it has received commitments from sophisticated
and institutional investors to subscribe for 100 Million CHESS
Depositary Interests (CDIs) (representing 50 Million shares
of Common Stock) at A$0.28 per CDI to raise approximately A$28
Million (Placement).
The Placement will be completed in two tranches with Tranche 1
consisting of approximately 38.5 Million CDIs (representing
approximately 19.3 Million shares of Common Stock) to be issued
within Osprey’s 15% placement capacity under ASX Listing Rule 7.1
and its 10% placement capacity under ASX Listing Rule 7.1A. Tranche
2 will consist of approximately 61.5 Million CDIs (representing
approximately 30.8 Million shares of Common Stock) to be issued
subject to stockholder approval at a special meeting of
stockholders (Special Meeting) to be convened by the Company
on or about Tuesday, 30 August 2016.
The funds raised from the Placement will be primarily used by
the Company to:
- expand commercialisation of the
DyeVertTM System;
- continue research and development of
the product portfolio, including DyeVertTM Plus;
- ongoing clinical evaluations for
scientific presentation and publication; and
- provide expansion capital to accelerate
growth.
Brandon Capital Partners, a 16.1% CDI holder in the Company
(pre-Placement), has committed A$10 Million to the Placement (to be
invested in Tranche 2).
Mike McCormick, President and CEO of Osprey, commented: “We are
delighted with the oversubscribed placement. It reflects a strong
endorsement from the investment community and places Osprey in a
very strong position to aggressively expand its sales and marketing
team in the US.”
“Our commercialisation efforts in the US have resulted in strong
sales traction to date with 7 quarters of consecutive growth in
sales and samples. Our original sales territory, San Antonio Texas,
was profitable in June 2016 with other territories following a
similar sales trajectory.”
Canaccord Genuity (Australia) Limited and Bell Potter Securities
Limited acted as the Joint Lead Managers to the Placement. Vesparum
Capital is acting as financial advisor to Osprey.
The CDIs under the Placement and Security Purchase Plan
(described below) will be issued on the same terms as, and will
rank equally with, the existing CDIs of Osprey.
Indicative Timetable¹² Trading halt
Tuesday, 2 August 2016 Record date for SPP
Wednesday, 3 August 2016 Placement and SPP
announced and Company resumes trading
Thursday 4 August 2016 Settlement of issue of Placement CDIs under
Tranche 1 Wednesday, 10 August 2016
Allotment of issue of Placement CDIs under Tranche 1
Thursday, 11 August 2016
Special Meeting for approval of issue of
Placement CDIs underTranche 2
On or around Tuesday, 30 August2016
Settlement of Placement CDIs under Tranche 23
Monday, 5 September 2016 Allotment of Placement CDIs under
Tranche 23 Tuesday, 6 September 2016
(1) The timetable above is
indicative only and may be varied subject to the ASX Listing
Rules
(2) All times are in AEST
(3) Assumes stockholder
approval (>50%) is granted at the Special Meeting
Security Purchase Plan
In addition to the Placement, the Company is offering existing
holders of CDIs with registered addresses in Australia and New
Zealand the opportunity to subscribe for up to approximately
A$15,000 or approximately 53,571 CDIs under a Security Purchase
Plan (SPP). The issue price under the SPP is A$0.28 per CDI,
which is the same price as under the Placement. The amount raised
under the SPP will be capped at A$1 Million. The proceeds of the
SPP will be used by the Company for the same purposes as the
Placement.
The record date for the SPP is 7pm (Melbourne time), Wednesday,
3 August 2016. Full details of the SPP will be released to the ASX
and mailed to eligible CDI holders shortly.
About Osprey
Osprey Medical is focused on protecting patients from the
harmful effects of X-ray dye (contrast) used during commonly
performed angiographic imaging procedures. The Company’s core
technologies originated from research conducted by Dr David Kaye at
Melbourne’s Baker IDI Heart and Diabetes Institute. Its proprietary
dye reduction and monitoring technologies are designed to help
physicians minimize dye usage. The Company’s DyeVert™ System is a
next-generation product that reduces contrast while maintaining
image quality in a self-adjusting easy-to-use design. Osprey
Medical’s Board and Management are comprised of experienced and
successful personnel with established track records covering
medical device development, regulatory approvals, sales and
marketing, and mergers-acquisitions. Osprey Medical’s advisory
board comprises world-recognised experts in heart and kidney
diseases.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160804005622/en/
MediaBuchan ConsultingGavin Lower, (613) 8866
1215glower@buchanwe.com.auorInvestorsBuchan
ConsultingRebecca Wilson, (61) 417 382
391rwilson@buchanwe.com.auorCompanyOsprey Medical Inc.Doug
Schoenberg, (952) 955 8230VP of
Marketingdschoenberg@ospreymed.com
Osprey Medical (ASX:OSP)
Historical Stock Chart
From Jun 2024 to Jul 2024
Osprey Medical (ASX:OSP)
Historical Stock Chart
From Jul 2023 to Jul 2024