Respiri Limited Secures Additional $1.1 Million in Funding to Accelerate US Commercialisation Strategy
RSH (RSH) Share Update July 2024 Monday 29th
Respiri Limited Raises $1.1 Million Through Additional Placement
Respiri Limited (ASX:RSH; OTCQB:RSHUF), an eHealth SaaS company, has successfully raised an additional A$1.1 million through a new placement from existing sophisticated and professional shareholders.
Instant Summary:
- Raised A$1.1 million through new placement.
- Issued 36,666,667 new fully paid ordinary shares at $0.03 per share.
- Placement price represents a 3.4% premium to the last closing price.
- Funds to accelerate US commercialisation strategy.
- Total of $8.135 million raised in the past 8 months.
Details of the Placement
Respiri Limited has announced that it has raised A$1.1 million through a new placement from existing sophisticated and professional shareholders. The company will issue 36,666,667 new fully paid ordinary shares at an issue price of $0.03 per share, which is a 3.4% premium to the last closing price of $0.029 on 29 July 2024.
The funds from this placement have already been received and will be converted to equity in the coming weeks. This capital will be used to accelerate Respiri's US commercialisation strategy, including patient recruitment and onboarding, enhancing its Clinic in Cloud (CiC) services, and finalising risk share capitated contracts that are currently underway. These initiatives are critical for the company to achieve its goal of breaking even in cash flow by late 2024.
Company's Strategic Goals
Over the past 8 months, Respiri has raised a total of $8.135 million through the support of new and existing investors. Managing Director Marjan Mikel expressed gratitude towards the new investors and highlighted that the funds raised will significantly aid the company in progressing towards profitability.
Respiri Limited is a leading eHealth SaaS company that supports respiratory healthcare management and remote patient monitoring in the USA. The company is known for its innovative medical devices and MedTech solutions, including the FDA-approved wheezo® device, which is the only WheezeRate detector capable of integrating into remote patient monitoring programs.
This additional funding is likely to have a positive impact on Respiri Limited's stock as it demonstrates strong investor confidence and provides the necessary capital to accelerate the company's US commercialisation strategy. The 3.4% premium on the new shares also indicates a positive market sentiment towards the company's future prospects.
Investor Reaction:
Analysts are likely to view this additional funding as a positive development for Respiri Limited. The company's ability to raise capital at a premium suggests strong investor confidence. However, the company's performance in executing its US commercialisation strategy will be closely monitored by investors.
Conclusion:
Investors should keep an eye on Respiri Limited's progress in its US commercialisation strategy and its ability to achieve cash flow break-even by late 2024. The additional funding and the company's innovative healthcare solutions position it well for future growth.