- Orthocell has received firm commitments for a $10.6 million placement to accelerate the development and commercialisation of its CelGro nerve regeneration product
- Demand for the placement exceeded the funds sought
- Orthocell shares made a huge leap earlier this month after completing successful clinical trials of CelGro
- Orthocell said it is now well placed to execute its partnering strategy
Perth regenerative medicine company Orthocell Limited has successfully completed a $10.6 million placement to raise funds to support its tissue repair and regeneration collagen device, CelGro.
As part of the placement, approximately 26.5 million shares will be issued at an offer price of $0.40 per share, representing a 13 per cent discount of yesterday’s closing price of $0.46 per share. Settlement of the shares is expected to be completed on Wednesday 5 June, 2019.
The capital raised will be used to accelerate the development and commercialisation of CelGro for dental bone, tendon and nerve repair into key markets. Orthocell’s shares made a huge leap earlier this month after the company announced a highly successful patient trial of CelGro nerve regeneration treatment.
In May this year, four patients successfully completed a CelGro nerve regeneration clinical trial; after surgery with CelGro, all four patients regained muscle function and sensation of their affected limbs and returned to work, sport and the activities of daily living. The patients reported an 83 per cent improvement in muscle power.
On top of CelGro commercialisation, funding from the placement will assist in progressing key regulatory approvals in the US and other target markets, and support Orthocell business development and marketing initiatives. Bell Potter Securities acted as Lead Manager to the placement.
Orthocell Managing Director Paul Anderson said following the placement, the company is now well placed to execute its partnering strategy.
“The success of this transaction is an endorsement of Orthocell’s business strategy, progress in commercialising CelGro and the exciting outlook for the Company as it drives its leading products into key markets,” he said.
Orthocell is a regenerative medicine company focused on developing products for the repair of soft tissue injuries. Additional to CelGro, the company’s other cell-therapy products include Ortho-ATI and Ortho-ACI, which aim to regenerate damaged tendon and cartilage tissue.