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  • Memphasys (MEM) has enhanced its balance sheet thanks to $3 million in commitments from two of its largest shareholders
  • The capital raise, subject to shareholder approval, consists of unsecured notes and one unlisted option to investors Peter Investments and Andrew Goodall for every dollar of convertible notes subscribed at six cents each
  • Memphasys’ work focuses on reproductive biotechnology and proprietary cell separation techniques and the funding will allow the company to complete verification and validation activities on its sperm processing method, the Felix device
  • The company also plans to put the money towards additional products being developed with reproductive biology expert, Professor John Aitken, and his research team at the University of Newcastle
  • Shares are in the green on the back of the news, up 36.5 per cent at 7.1 cents

Memphasys (MEM) has enhanced its balance sheet thanks to $3 million in commitments from its two largest shareholders.

The shareholders have agreed to subscribe for unsecured notes in the Australian-based bio-separations company, with Peter Investments pitching in $1.65 million and Non-executive director Andrew Goodall committing the remaining $1.35 million.

Further, Memphasys has agreed to issue one unlisted option to the investors for every dollar of convertible notes subscribed, which will be exercisable at six cents each on or before the last day of 2023.

Memphasys’ work focuses on reproductive biotechnology and proprietary cell separation techniques and the funding will allow the company to complete verification and validation activities on its updated Felix device, which is a sperm processing method shown to improve fertility outcomes.

The company aims to complete the tasks ahead of re-commencement of commercial sales discussions in early access markets during the later stages of the quarter ending September.

Additionally, Memphasys is working with reproductive biology expert, Professor John Aitken, and his research team at the University of Newcastle, to develop a portfolio of novel artificial reproduction products for humans and animals.

The funding will be useful in advancing these additional products being developed at the university, including the next generation Felix device for human and wider animal market, in-vitro diagnostics for human and animal semen quality and the development of proprietary long-life semen storage media.

In particular, the company intends to fund work for its “most advanced” product, the stallion fertility test which is being developed and is planned to be field tested during the racehorse breeding season starting in September.

Clinical field testing of the company’s other products is planned for next year.

Memphasys believes the addressable market for these new products is significant, with the global animal artificial insemination industry alone estimated to reach US $2.5 billion (A$3.2 billion) by 2026.

The issue of convertible notes and options is subject to approval of Memphasys’ shareholders and if not gained, the company said it will pay an amount equal to the valuation of the options, to the investors.

Shares are in the green on the back of the news, trading 36.5 per cent higher at 7.1 cents at 12:03pm AEST.

MEM by the numbers
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