MVP Successfully Completes Institutional Placement and Entitlement Offer
MVP (MVP) Share Update July 2024 Monday 29th
MVP Completes Institutional Placement and Entitlement Offer
Medical Developments International Limited (ASX:MVP) has successfully completed its institutional placement and entitlement offer, raising approximately A$6.9 million.
Instant Summary:
- Raised approximately A$6.9 million through institutional placement and entitlement offer.
- Offer price set at A$0.38 per new share.
- 82% take-up rate from eligible institutional shareholders.
- New shares to be issued on 6 August 2024.
- Retail entitlement offer to open on 2 August 2024.
Institutional Placement and Entitlement Offer
Medical Developments International Limited (MVP) has announced the successful completion of its institutional placement and the institutional component of its 1 for 7.35 pro rata accelerated non-renounceable entitlement offer. The offer, which closed on 29 July 2024, raised approximately A$6.9 million at an offer price of A$0.38 per new share.
The institutional offer saw strong support from institutional investors, with an impressive 82% take-up rate from eligible institutional shareholders. This resulted in approximately A$5.55 million raised under the placement and A$1.34 million under the institutional entitlement offer. The placement not only attracted existing institutional shareholders but also introduced several new institutional investors to MVP's register.
Comments from Company Chair
Gordon Naylor, the Company Chair, expressed his satisfaction with the outcome, stating, 'We’re pleased to have such strong support from our institutional shareholders who have continued to invest in MVP through this financing. I would also like to welcome our new institutional investors to our share register. This raise has provided funding that will support delivery of our growth strategy. We will keep you updated as we progress.'
Next Steps and Retail Entitlement Offer
The new shares subscribed for under the institutional offer are expected to be settled on 5 August 2024 and issued on 6 August 2024. These new shares will rank equally with existing fully paid ordinary shares in MVP.
The retail component of the fully underwritten entitlement offer is set to open at 9.00am on 2 August 2024 and close at 5.00pm on 22 August 2024. Eligible retail shareholders will be able to subscribe for 1 new share for every 7.35 existing ordinary shares held as of the record date on 30 July 2024, at the same offer price of A$0.38 per new share.
Under the retail entitlement offer, eligible retail shareholders who subscribe for their full entitlement may also apply for additional new shares in excess of their entitlement up to a maximum of 100% of their entitlement under a 'top up' facility. Allocations for additional new shares will be determined by MVP in its absolute discretion and any allotment of additional new shares is not guaranteed.
The successful completion of the institutional placement and entitlement offer is a positive development for MVP, providing significant funding to support its growth strategy. The strong demand from institutional investors reflects confidence in MVP's future prospects. This capital raise is likely to have a favorable impact on MVP's stock price as it demonstrates robust investor support and financial stability.
Investor Reaction:
Analysts are likely to view the strong take-up rate and the introduction of new institutional investors as positive indicators of market confidence in MVP. The successful capital raise is expected to bolster investor sentiment and support MVP's strategic initiatives.
Conclusion:
Investors should monitor the progress of the retail entitlement offer and assess the potential long-term benefits of MVP's growth strategy. The successful capital raise positions MVP well for future growth and development, making it an attractive prospect for investors.