- Rhinomed raises $3.6 million via a placement at A$0.15 a share
- Placement supported by new institutional and existing sophisticated investors
- Capital Raising will position Rhinomed to accelerate revenue growth and marketing programs through its increasing retail footprint in the US, UK and Australia
Both the Chairman, Mr Ron Dewhurst and CEO, Mr Michael Johnson, will participate in the placement, subject to shareholder approval that will be sought at a General Meeting of shareholders. Details on the General Meeting will be circulated in due course.
The net proceeds of the private placement will be used to drive growth of the company's Mute snoring and sleep technology which is now stocked in well over 7000 stores globally. The placement will also support working capital needs.
The placement is priced at $0.15 per new share, which was the Company's closing share price o n 24 November, the last business day on which the Company's shares traded prior to this announcement. The offer price represents a 5% discount to the 15 day VWAP. All new placement shares will rank equally with the existing shares.
The Placement was well supported and managed by Bell Potter Securities Limited (Bell Potter). CEO Michael Johnson said, " We are delighted to have the ongoing confidence of our key investors and warmly welcome the new institutional and sophisticated investors to our company. The level of support at this important stage of the company's growth speaks to not only the strong commercial potential but also the longer term potential of our unique technology platform."
The Placement Shares will be issued under the Company's existing capacity under its ASX Listing Rule 7.1A capacity (10% capacity) and the remainder under its ASX Listing Rule 7.1 capacity (15% capacity) with details as below:
Number of Shares on issue prior to capital raising: 93,637,159
Shares issued under Listing Rule 7.1A (Capacity Shares): 9,363,716
Dilution as a result of issue under Listing Rule 7.1A: 10%
Share issued under Listing Rule 7.1: 14,037,178
Shares to be issued subject to shareholder approval: 633,334
Total number of shares on issue subsequent to the capital raising: 117,671,387
About Rhinomed Ltd
Rhinomed Limited (ASX:RNO) is a Melbourne based, medical technology firm with a focus on nasal, respiratory and breathing management technologies. The company is seeking to monetise applications of its technology portfolio in the Sport, Sleep, Wellbeing and Drug Delivery markets. For more information, go to www.rhinomed.global