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- Respiri (RSH) has successfully completed an oversubscribed share placement and raised $12.5 million
- 62.5 million new fully-paid ordinary shares will now be issued to institutional, professional and sophisticated investors at 20 cents each
- Respiri will use the funds for its U.S. and European market launches, sales and marketing initiatives, and product development and research
- The company will also use the funds to build its wheezo inventory to meet growing demand
- The wheezo device monitors wheezing in patients to help manage and improve asthma symptoms
- Despite the announcement, Respiri has dropped 14.9 per cent and shares are currently trading for 20 cents each
Respiri (RSH) has successfully completed an oversubscribed share placement and raised $12.5 million.
On October 14, the eHealth company entered two consecutive trading halts in regards to the placement but did not announce how much it was aiming to raise.
62.5 million new fully-paid ordinary shares will now be issued to institutional, professional and sophisticated investors at 20 cents each.
This price represents a 6.5 per cent discount to Respiri’s 30-day volume-weighted average price.
Respiri will use the funds for its U.S. and European market launches, sales and marketing initiatives, and product development and research.
The company will also use the funds to build its wheezo inventory to meet growing demand.
The wheezo device monitors wheezing in patients to help manage and improve asthma symptoms. It also eases data sharing between caregivers, physicians, and other healthcare professionals.
Under Respiri’s most recent placement, shares are expected to settle on October 27 and be allocated on October 28.
“This additional funding provides Respiri with the financial flexibility to meet our stated corporate objectives, which in near term supports the commercial launch of wheeze in Australia this quarter,” Executive Chairman Nicholas Smedley commented.
“Moreover, the capital raised is expected to fully fund the company to a sustainable cash flow breakeven position, which is forecast to occur in the second half of FY22,” he added.
Despite the announcement, Respiri has dropped 14.9 per cent and shares are trading for 20 cents each at 12:26 pm AEDT.
