The funds raised will be used to drive the expansion of the company's Australian business
MinterEllison has assisted specialised healthcare company Medical Developments International Limited on a capital raising effort worth $30m
According to Medical Developments, the capital raising is comprised of a $15m placement and a $15m pro-rata accelerated non-renounceable entitlement offer. The company confirmed that the funds raised will be primarily used to drive the expansion of its Australian business, continuously execute its direct sales strategy in the large European market, and invest in its business capability to enable global growth.
“We are pleased with our strong revenue growth in FY22 and expect this to continue into FY23,” Medical Developments chair Gordon Naylor said. “With a strong funding position following the capital raising, we look forward to investing to continue to deliver on our growth strategy.”
The offer price is $2.00 per new share, representing a discount of 16.7% to the last closing price of $2.40 per share as of 3 August. For every 2.5 new shares subscribed for, one attaching option will be received − which is exercisable at $2.80 and expiring in September 2024.
Partner Sudharshan Senathirajah led the MinterEllison team on every aspect of the transaction. The team assisted Medical Developments with offer structuring, due diligence, and the preparation of a prospectus connected to the capital raising.
“Medical Developments has been providing innovative healthcare solutions since 1971,” Senathirajah said. “As health technology becomes more important to the global community than ever before, we're delighted to support Medical Developments as they look to grow their products and capability in Australia and around the world.”