Regenerative medicine company Orthocell Ltd (ASX:OCC, OTC:ORHHF) has completed an A$17 million placement to fund the US launch of Remplir™ and to drive further global commercialisation for Remplir and Striate+™.
Remplir is a collagen wrap used in peripheral nerve repair, while Striate+ is a sterile, resorbable collagen membrane used for guided bone and tissue regeneration in dental applications.
Strong support received
The placement received very strong support from existing and new leading Australian and international institutional investors, high net worths and family offices, and was conducted utilising Orthocell’s available placement capacity.
This will result in the issue of up to 28,333,333 new fully paid ordinary shares at an issue price of A$0.60 to raise A$17 million (before costs).
Orthocell chair John Van Der Wielen subscribed for A$100,000 in the placement, which is subject to shareholder approval.
“This successful capital raise represents strong market validation of Orthocell’s growth potential and commercial strategy,” said Van Der Wielen.
“This allows us to grow the USA market quicker, invest in volume manufacturing, and also speed up the progress of our promising pipeline products.”
Positioned to enter global markets
Orthocell is well positioned to drive its Striate+ bone repair and Remplir nerve repair medical devices into significant global markets.
The placement supports the company’s balance sheet with circa A$35 million in cash and no debt to be applied towards funding the launch of Remplir in the US and other key markets including Singapore, Southeast Asia, Canada and the EU/UK.
Specifically, the placement will fund further scale-up of manufacturing infrastructure; automation projects to enhance manufacturing cost efficiency; sales force and marketing resources to oversee distribution; working capital; and costs of the placement.
The company holds a strong cash position and is executing a focused regulatory program targeting multiple strategic markets.
Importantly, Orthocell remains on schedule to submit its Remplir US 510(K) market authorisation application this quarter with progression into US FDA approval and sales soon thereafter.