Avita Medical Ltd. (AVMXY: OTCQX International) | Avita Medical Announces AUD$10M Equity Financing

OTC

Avita Medical Announces AUD$10M Equity Financing

Oct 19, 2015

OTC Disclosure News Service

Northridge, CA and Cambridge, UK

Avita Medical Ltd. (ASX: AVH),
(OTCQX: AVMXY), a
regenerative medicine company specializing in the treatment of wounds and skin
defects, announced today the closing of a AUD$10,018,644
common stock placement to sophisticated and institutional investors through the
issue of 107,727,359 shares at a price of AUD$0.093 per share.

 

The Company said the placement is part of its
funding strategy to support its stated commercialization goals under a broader
placement approval from shareholders obtained at a meeting held on 24 August
2015. This $10m placement has been priced at a 20% discount to the 5-day volume
weighted average price (VWAP) which is a 15% premium to where the share price
was just one month ago. Most of the funds are coming from current institutional
shareholders. Key investors are Hunter Hall International and One Funds Management
Limited as Trustee for Asia Pacific Healthcare Fund II, which is managed by
Bioscience Managers.  Avita
Directors Jeremy Curnock Cook and Matt McNamara are also executives and
directors of BioScience Managers Pty Ltd
. Other current sophisticated investors
have also participated, and the Company welcomed new shareholders: Oceania
Capital, and DMP Asset Management
.

 

Besides ensuring security for funding the Company’s
ongoing operational expenses for at least the next 12 months, the placement
will also support execution of a contract from BARDA, a US federal disaster
preparedness agency, which is valued at up to USD $53.9m over the next five
years.

 

“We view the increased participation of our longstanding shareholders as
a significant endorsement of our commercialization strategy,” said Adam
Kelliher, CEO of Avita Medical.  “These
investors have indicated that they have been impressed with the clinical trial
strategy and the securing of the BARDA contract, and thus decided the company
is worthy of continued support”

“We also note that this vote of
confidence for Avita has come during a volatile and difficult period in the
capital markets,” concluded Kelliher. “The entire Avita team looks forward
to rewarding the confidence shown by our investors by delivering on our
declared commercial milestones.”

 

The Company said it will
continue to review its capital options based upon anticipated needs and terms
available.
It would remain engaged with US, Australian and
other investors who have already expressed an interest in future participation,
the Company said.

 

Lake Street Capital Markets acted as Lead Agent for
the Placement and Griffin Securities acted as Co-Placement Agent.

 

Subject
to clearance of subscription funds, the new shares under the placement are
expected to be allotted on 20 October 2015 and will rank equally with all
ordinary shares in Avita Medical.


ABOUT RECELL®,
REGENERCELL®. RENOVACELL®, AND RES™

Avita Medical’s unique proprietary technology enables a clinician to
rapidly create, at point of care in approximately 30 minutes, Regenerative
Epithelial Suspension (RES™) using a small sample of the patient’s skin. RES™
is an autologous suspension comprising the cells and wound healing factors
thought necessary to regenerate natural, healthy skin. RES™ has a broad range
of applications and can be created using specific Avita Medical devices and
applied to select treatment indications:

  • ReCell® for burn injuries, to repair for earlier definitive closure and
    superior outcomes;
  • ReGenerCell® for chronic wounds, to initiate and promote healing in
    unresponsive wounds;
  • ReNovaCell® for skin pigmentation defects, to restore pigmentation and improve
    the appearance of scars and damaged skin. 
     

ABOUT AVITA
MEDICAL LIMITED

Avita Medical develops and distributes regenerative products for the
treatment of a broad range of wounds, scars and skin defects. Avita’s patented
and proprietary collection and application technology provides innovative
treatment solutions derived from a patient’s own skin. The Company’s lead
product, ReCell®, is used in the treatment of a wide variety of burns, plastic,
reconstructive and cosmetic procedures. ReCell® is patented, CE‐marked for
Europe, TGA‐registered in Australia, and CFDA‐cleared in China. In the United
States, ReCell® is an investigational device limited by federal law to
investigational use. A pivotal U.S. trial is underway, with patient enrollment
completion anticipated by the end of 2015. To learn more, visit www.avitamedical.com.

For Further Information:

 

Avita Medical Ltd

Adam Kelliher

Chief Executive Officer

Phone: +44 (0) 1763 269 772

akelliher@avitamedical.com

 

Avita
Medical Ltd

Tim Rooney

Chief Financial Officer

Phone: + 1 (818) 356-9400

trooney@avitamedical.com

 

Avita Medical Ltd

Gabriel Chiappini

Company Secretary

Phone +61(0) 8 9474 7738

gabriel@laurus.net.au

 

USA

The Ruth Group

Lee Roth, Investor Relations

Kirsten Thomas, Public Relations

Phone: +1 (646) 536-7012 / +1 (508) 280-6592

lroth@theruthgroup.com

/ kthomas@theruthgroup.com

 

Australia

Monsoon Communications

Rudi Michelson

Investor Relations / PR

Phone: +61 3 9620 3333

rudim@monsoon.com.au

 

This release includes additional documents. Select the link(s) below to view.

Avita Announces AUD$10M Equity Financing.pdf

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