Osteopore Limited Announces A$20 Million Convertible Note Issue
OSX (OSX) Share Update September 2024 Thursday 26th
Osteopore to Raise A$20 Million Through Convertible Note Issue
Osteopore Limited (ASX: OSX), a leading regenerative medicine company, has entered into an agreement to raise A$20 million through the issuance of redeemable convertible notes. This funding will support the company's growth and development initiatives.
Instant Summary:
- Osteopore to issue A$20 million in redeemable convertible notes.
- Notes to be issued in four tranches of A$5 million each.
- 4% annual interest rate on the notes.
- 36-month maturity date from the first drawdown.
- Conversion price set at 80% of the average closing price over a selected period.
- Funds to be used for business operations, future projects, and debt reduction.
Funding Details
Osteopore Limited has announced a significant funding initiative aimed at raising A$20 million through the issuance of redeemable convertible notes (RCNs). The company has entered into a term sheet with Advance Opportunities Fund and Advance Opportunities Fund I (AOF I) for this purpose.
The notes will be issued in four equal tranches of A$5 million each, with each tranche further divided into 20 sub-tranches of A$250,000. The notes carry an annual interest rate of 4% and have a maturity date set at 36 months from the completion of the first sub-tranche drawdown.
Conversion Terms
Noteholders have the option to convert the notes into shares at a conversion price set at 80% of the average closing price over any five consecutive business days within the 45 business days preceding the conversion date. This provides flexibility and potential upside for investors.
Use of Funds
The funds raised will be used for various purposes, including ongoing business operations, future developments, projects, and investments. Additionally, the funds may be used to discharge or reduce existing loans of the company.
Growth Opportunities
Osteopore's Executive Chairman, Mark Leong, highlighted the company's recent achievements and future potential. Over the past 18 months, Osteopore has seen six consecutive quarters of revenue growth, with its bioresorbable implants being used in over 120,000 surgeries. The company's exclusive distribution agreement with Zimmer Biomet further validates its technology and strengthens its market position.
Leong emphasized that the RCN provides the company with the financial flexibility and agility needed to drive its growth plans forward. The funding aligns with Osteopore's current growth stage and future ambitions, allowing the company to expand its business, secure further regulatory approvals, and advance its regenerative capabilities.
The announcement of the A$20 million funding through redeemable convertible notes is likely to have a positive impact on Osteopore's stock. The additional capital will support the company's growth initiatives and enhance its financial stability. Investors may view this as a strategic move to strengthen the company's market position and drive future growth.
Investor Reaction:
Analysts are expected to react positively to the funding announcement, given the potential for growth and expansion. The flexibility offered by the convertible notes and the company's recent performance are likely to be viewed favorably. However, investors will be keen to monitor the company's execution of its growth plans and the impact of the funding on its financial metrics.
Conclusion:
Osteopore's announcement of A$20 million in funding through redeemable convertible notes marks a significant step in its growth journey. Investors should keep an eye on the company's progress and how it leverages this funding to achieve its strategic goals. This move underscores Osteopore's commitment to innovation and market expansion.