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The ASX granted the trading pause before market open. Prior to being put into the trading halt, the last bid for the Medical Developments share price was $2.40 apiece.
What was announced?
Medical Developments advised that it will complete a fully underwritten capital raising of $30 million.
This will be comprised of a $15 million placement and a $15 million pro rata accelerated non-renounceable entitlement offer.
It hopes to achieve a cash balance of $49 million post offer to fund three core areas. Per the announcement:
Post transaction MVP’s cash balance will be A$49m which will fund:
– continuing execution of the Company’s direct sales strategy in the large European
– expansion of the Australian business into the emergency sector and further growth in
the ambulance sector
– further investment in business capability to enable global growth
The 1 for 9.5 pro-rata accelerated non-renounceable entitlement offer seeks to raise $15 million. It comes with 1 attaching option to acquire 1 fully paid ordinary share for every 2.5 new shares
Whereas the placement is targeted towards sophisticated investors with 1 option for every 2.5 new shares issued.
Speaking on the announcement, chairman Gordon Naylor said the company was “pleased with [its] strong revenue growth in FY22and expect this to continue into FY23”.
“With a strong funding position following the capital raising, we look forward to investing to continue to deliver on our growth strategy.”
The Medical Developments share price is down more than 42% this year to date.
Cap Expand Partners sharing news from: www.fool.com.au