Cardiex Secures Funding Ahead of CONNEQT Pulse US Launch
CARDIEX LIMITED (CDX) Share Update December 2024 Tuesday 17th
Cardiex Completes $3.25 Million Capital Raising for US Launch
Cardiex Limited (ASX: CDX) has successfully completed a capital raising effort, securing $3.25 million to support the upcoming US launch of its CONNEQT Pulse device.
Instant Summary:
- Raised $3.25 million through a placement of 36,111,112 shares.
- New shares priced at $0.09 each, a 9.1% discount to the last closing price.
- Funds to be used for manufacturing, marketing, and sales activities.
- Launch of CONNEQT Pulse device in the US set for January 2025.
- Institutional and sophisticated investors participated in the placement.
Capital Raising Details
Cardiex Limited has announced the successful completion of a capital raising initiative, generating $3.25 million through the placement of 36,111,112 fully paid ordinary shares. The shares were offered at $0.09 each, reflecting a 9.1% discount to the last closing price and a 9.3% discount to the 15-day VWAP.
Participants in the placement will also receive one free attaching listed option for every new share acquired. These options, under the existing class CDXOA.ASX, are tradable and exercisable at $0.20, expiring on or before 30 November 2025.
Investor Participation
The placement saw strong support from both existing institutional shareholders and new sophisticated investors from Australia and the USA. Notably, Cardiex Directors and C2 Ventures Pty Limited, the company's largest shareholder, will also partake in the placement, pending shareholder approval at the next general meeting.
Use of Funds
The funds raised will primarily be allocated to the manufacturing, marketing, and sales activities necessary for the commercial expansion of the CONNEQT Pulse device. This includes scaling up supply chain operations in preparation for the device's US market launch in January 2025.
Regulatory Compliance and Management
The new shares will be issued under Cardiex's existing capacity as per ASX Listing Rules 7.1 and 7.1A, ranking pari passu with existing ordinary shares from the date of issue. A portion of shares and options to be issued to Cardiex Directors and C2 Ventures Pty Limited will require shareholder approval.
Blackpeak Capital Pty Ltd and Stralis Capital Partners served as Joint Lead Managers for the placement, earning a fee of 6% of the total amount raised.
This capital raising positions Cardiex well for its strategic US expansion, potentially enhancing its market presence and revenue streams. The discounted share price may initially pressure the stock, but the long-term growth prospects from the US launch could attract investor interest.
Investor Reaction:
Analysts are likely to view the capital raising positively due to the strategic use of funds for market expansion. However, the discounted share price might cause short-term volatility in the stock.
Conclusion:
Investors should keep an eye on the upcoming US launch of the CONNEQT Pulse device, as successful market entry could significantly boost Cardiex's growth prospects. Monitoring shareholder approval and subsequent developments will be crucial.