Join our daily newsletter At The Bell to receive exclusive market insights
- Pregnancy technology company HeraMED (HMD) has received $233,000 in applications via its recent share purchase plan (SPP)
- The amount raised fell far short of the $1.5 million which the company hoped to bring together through the plan
- The SPP is part of a larger capital initiative to raise up to $3.82 million, which HeraMED previously announced
- Now, the company will use the proceeds to strengthen its balance sheet and accelerate the rollout of its pregnancy monitoring platform, HeraCARE
- Today, HeraMED shares closed 4.3 per cent in the red, last trading for 8.9 cents each
Pregnancy technology company HeraMED (HMD) has received $233,000 in applications via its recent share purchase plan.
The applications were for 2,588,879 fully paid ordinary shares in the company at nine cents per share. However, this result falls far short of the $1.5 million which HeraMED hoped to raise through the share purchase plan.
The shares from the purchase plan, which closed on July 9, will be issued on July 15, 2020. The shares should begin trading on the Australian Securities Exchange (ASX) on the following day, July 16.
The company will now seek to place the remaining shortfall of shares with professional, sophisticated, and other exempt investors. The share purchase plan’s shortfall consists of 14,077,787 shares in HeraMED.
However, the company has already received firm indicative bids for over half of the share purchase plan’s shortfall value. HeraMED intends to arrange the shortfall placement with the help of advisory firm Henslow.
Broadly, the share purchase plan is part of a larger capital initiative to raise up to $3.82 million in proceeds. The initiative, announced on June 5, consisted of a share placement and share purchase plan.
The aforementioned share placement was very successful, receiving commitments for approximately $2.32 million. Combined with the share purchase plan, HeraMED has now raised a total of approximately $2.55 million.
Now, the company’s capital raising initiative will go towards strengthening HeraMED’s balance sheet. The proceeds will also accelerate the commercial rollout of its proprietary digital pregnancy monitoring platform, HeraCARE.
Today, HeraMED shares closed 4.3 per cent in the red, last trading for 8.9 cents each.
