- Oventus (OVN) has raised $2 million through a share purchase plan, after receiving demand six times higher than expected
- Over $12 million in subscriptions were received, though the plan will remain capped at $2 million
- The plan, combined with a recent institutional placement, has raised $6.65 million in funds
- The funds raised will be used on expanding Oventus’ lab in lab business model, as demand grows in North America
- Meanwhile, those participating in the plan or recent placement will also be offered one option for every two shares purchased, exercisable at a price of 36 cents per share before June 30, 2021
- Oventus shares closed 3.03 per cent lower today at 32 cents per share
Oventus (OVN) has successfully closed its recent share purchase plan, after receiving huge demand.
The company, known for its sleep apnoea treatment, was overwhelmed with subscriptions totalling $12.64 million, easily exceeding their $2 million target.
However, the plan is capped at the $2 million target, with participating shareholders to be issued their shares today.
Oventus is also offering those participating in the plan or recent placement a one for two option, exercisable at a price of 36 cents per share before June 30, 2021
The funds raised from the share purchase plan will be combined with the $4.65 million earned during a recent placement, to total $6.65 million in total.
The money will be put towards the company’s expanding lab in lab business model, which ensures sleep apnoea patients receive same location treatment regardless of whether they seek help from a sleep or dental specialist, to meet growing demand in North America.
“We have been humbled by the level of support shown for Oventus by both institutions and our existing shareholders through this process,” said Oventus Chairman Mel Bridges.
“This new capital fortifies Oventus’ balance sheet as we continue to make our way through the COVID-19 operating environment,” Mel added.
Speaking on the difficulties arising from the coronavirus pandemic, Oventus CEO Chris Hart said the company had adapted their technology, while continuing to sign new agreements.
“Our contract pipeline remains robust and we expect trading to be near normal levels by the September quarter,” he said.
“This, combined with a number of solid existing agreements in the US and Canada and our sound balance sheet, means we are well placed with our commercialisation strategy as post-COVID19 conditions continue to normalise,” Chris added.
Oventus shares closed 3.03 per cent lower today at 32 cents per share.