Regenerative medicine company Orthocell Ltd (ASX:OCC, OTC:ORHHF) has secured firm commitments for a strategic placement amounting to A$3.5 million at A$0.37 per share.
Prominent investors take part
The placement has attracted significant interest from prominent investors including Chris Ellison, Rod Jones, Michael Malone, the McCusker Family and the Merchant Biotech Fund, thereby bolstering the company's share register.
The placement will result in the issuance of 9,459,460 new fully paid ordinary shares, with allotment expected on February 28.
With this cash injection, the company is now poised to advance its Striate+ bone repair and Remplir nerve repair products in global markets, focusing on a strategic regulatory program and the completion of a pivotal nerve repair study for US regulatory approval in 2024.
The capital raise comes on the heels of a recent board restructure at Orthocell and the appointment of high-profile independent directors Professor Fiona Wood AM and the Hon Kim Beazley AC.
The company has also solidified a long-term partnership with the University of Western Australia, converting all royalty entitlements into shares in Orthocell.
Expansion into the US
Chair John Van Der Wielen said: “The support of these strategic investors is an endorsement of Orthocell’s science, business strategy and progress in commercialising its leading bone and nerve repair products, and the exciting outlook for the company as it progresses approvals in new key jurisdictions like the US.
"The board and I would like to welcome the new investors to the register.”
With an existing cash reserve of A$19.6 million, an anticipated R+D tax rebate of around A$3.0 million and the A$3.5 million raised through this strategic placement, Orthocell is now in a robust financial position.
The capital will support the company's global market expansion strategy and the anticipated US product registration for Remplir™, its nerve repair solution, expected in the first quarter of the calendar year 2024.