Posted: 2013-10-16 in Press Releases
Osprey Medical Inc. Announces A$14 Million Placement
Minnesota, United States and Melbourne, Australia - October 16, 2013 - Osprey Medical Inc. (ASX: OSP) today announced it has received commitments for an oversubscribed private placement of 21,538,461 CHESS Depository Interests (CDI's) (representing 10,769,230 shares of common stock) with international and domestic institutions and accredited and sophisticated investors to raise A$14 million at a price of A$0.65 per CDI (Placement).
The CDI's that have been subscribed for under the Placement are available for issue under Osprey's placement capacity under ASX Listing Rules 7.1 and 7.1A.
The funds raised significantly strengthens the Company's balance sheet as the Company pursues its primary objectives being:
- up-coming targeted US launch of the AVERT™ System;
- completion of the AVERT trial to enhance the FDA approved marketing claim to include "prevention of CIN";
- completion of the 20-patient diabetic limb recovery trial followed by filings to seek Australian and European marketing clearance for the diabetic limb recovery product;
- further product development; and
- commercial launch of the AVERT™ System targeted for mid-2015
Mike McCormick, President of Osprey Medical, commented: "We are very pleased with the strong support for this important capital raising from both existing institutional shareholders as well from several new institutions from both Australia and overseas. It's an exciting time for Osprey as we move towards commercialisation of the AVERT™ System and the strong support we've received for this transaction is an important validation of the progress we've made since listing on the ASX just 18 months ago."
The Placement follows a period of significant achievement. In August, the Company announced that it had received U.S. FDA 510(k) clearance for the AVERT™ System. In September, Osprey announced that the U.S. FDA had given its approval for the company to initiate a clinical trial of the AVERT™ System which is aimed at enabling the Company to expand its market claim for the AVERT™ System to include "reduction of Contrast Induced Nephropathy (CIN)" for patients undergoing angiogram or stenting procedures.
Part of the Placement, representing approximately 2.3 million CDIs collectively, has been subscribed by Brandon Managed Funds (the MRCF Trust and BBF1 Trust) and Talu Venture (formerly CM Capital), the Company's largest shareholders. To facilitate their internal processes, the settlement of their subscriptions (and the subscription of 0.215m CDI's by another existing institutional holder), may occur up to 30 days following this announcement.
Cannaccord Genuity (Australia) Limited is the lead manager of the Placement.
The announcement does not and shall not constitute an offer to sell or the solicitation of any offer to buy any securities.