- Health technology company Respiri (RSH) has raised $2 million through a share placement
- The money was raised to progress commercial development, sales and marketing, and FDA clearance for its wheezo technology
- wheezo is a medical device linked to a software app which can detect the presence of wheezing
- This device help people with respiratory problems better manage their health
- Respiri has also announced plans to raise a further $1 million through a share purchase plan
- This will be open from April 10 2020
- Respiri went into a voluntary suspension on March 19 pending the news of the placement. Shares last traded for 7.4 cents each
Respiri (RSH) has completed a $2 million share placement and announced plans to raise up to a further $1 million.
The health technology company raised the money to progress the development, manufacturing, and sales and marketing of its wheezo respiratory device.
wheezo is an asthma management device which can detect the presence of wheezing in people diagnosed with asthma before they can. It's linked to an eHealth software-as-a-service (SaaS) which gives an instant reading and tracks symptoms, triggers and the medication plan on a daily basis.
Earlier this month, Respiri received the first batch of wheezos which included 500 devices.
The company confirmed that 95 per cent of the devices passed the compliance testing and the team is very pleased with the wheezo's performance.
But, as stated today, a full commercial launch of wheezo in Australia isn't expected until the end of 2020.
"The additional capital provides the company with sufficient cash runway to complete a number of strategic objectives including the completion of a binding marketing & distribution agreement with a multinational pharmaceutical company in Australia, commercial production of 500 wheezo units, FDA clearance and a full commercial launch in Australia during 2020," CEO Marjan Mikel said.
The share placement was made to sophisticated and professional investors with the issue of 36,363,637 ordinary fully paid shares at a price of $0.055 per share.
This represents a 25.6 per cent discount to the closing price on the last trading day prior to the trading halt on March 17 2020 and a 23.9 per cent discount to the 15 day volume weighted average price ending March 16 2020.
Allotment of these shares is scheduled to occur on March 27. Within the placement, Directors of Respiri have committed roughly $0.45 million, however shareholder approval is pending.
Additionally, Respiri hopes to raise up to $1 million extra through another share purchase plan.
This offer gives eligible shareholders the opportunity to purchase up to $30,000 of new Respiri shares at $0.055 per share.
The company expects the offer will be open for three weeks from April 10 2020 to May 1 2020.
Respiri went into a voluntary suspension on March 19 pending the news of the placement. Shares last traded for 7.4 cents each.