MINNEAPOLIS, Minn. & MELBOURNE, Australia--(BUSINESS WIRE)--Osprey Medical Inc. (ASX: OSP) has today announced it has received commitments for a heavily oversubscribed private placement of 30,800,000 CHESS Depositary Interests (CDIs) (representing 15,400,00 shares of common stock) at a price of A$0.53 per CDI to raise approximately A$16.3 million (Placement)."
The CDIs that have been subscribed for under the Placement are available for issue under Osprey’s placement capacity under ASX Listing Rules 7.1 and 7.1A.
The funds raised significantly strengthens the Company’s balance sheet as the Company pursues its primary objectives including:
- Completion of AVERT post market trial and FDA submission for enhanced marketing claims (targeted end of CY2015);
- Establishing routine adoption of AVERT in initial commercial sites in Texas;
- Expanding commercial sales territory in Texas;
- Undertaking preparation for full US launch of AVERT expected in early 2016; and
- Ongoing R&D focused on expansion of the AVERT portfolio.
Mike McCormick, President of Osprey Medical, commented: “We are very pleased with the oversubscribed placement. It further broadens our shareholder base with strong support received from both existing institutional shareholders as well from several new institutions in both Australia and overseas.”
"This capital raising places Osprey in a strong position. Enrolment in our post market clinical trial in well on track and we are targeting completion of the trial and FDA submission in order to expand AVERT marketing claims by end CY 2015.”
“In addition, there is increasing focus by physicians on the need to reduce and monitor dye usage, as well as on the devastating effects of CIN, and we are enjoying excellent physician feedback in our pilot launch of AVERT in Texas and are readying the Company for full US launch in early 2016. This is an exciting period for Osprey," Mr McCormick concluded.
Canaccord Genuity (Australia) Limited acted as the sole lead manager and bookrunner for the Placement.
This announcement does not and shall not constitute an offer to sell or the solicitation of any offer to buy any securities.
About the AVERT™ Plus System
The AVERT™ Plus System consists of a single use disposable convenience kit that includes a contrast modulation reservoir and a smart syringe with contrast monitoring technology. The disposable components attach to a reusable control system and LCD monitor display unit. The system is designed to both reduce and monitor the amount of contrast dye used by interventional cardiologists during angiographic heart and peripheral vascular (leg) imaging procedures. Osprey has received FDA clearance for a marketing claim of “controlled infusion of dye”. The Company is currently conducting a post market trial with the aim of expanding its marketing claim to include; lowering patient dye dose while demonstrating reduced reflux and adequate image quality, along with CIN reduction and hospital cost savings.
Osprey Medical's core technologies originated from research conducted by Dr David Kaye at Melbourne’s Baker IDI Heart and Diabetes Institute. Osprey is focused on improving patients’ quality of life by protecting those with chronic kidney disease from contrast induced nephropathy (CIN). The Company’s primary product, the AVERT™ Plus System, is designed to reduce and monitor the amount of dye (contrast) injected during commonly performed heart and peripheral procedures.
Osprey Medical’s Board and Management are comprised of experienced and successful personnel with established track records covering medical device development, regulatory approvals, sales and marketing, and mergers-acquisitions. Osprey Medical’s advisory board comprises world-recognised experts in heart and kidney diseases.
This announcement contains or may contain forward-looking statements that are based on management’s beliefs, assumptions and expectations and on information currently available to management. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future are forward-looking statements, including without limitation our expectations with respect to our ability to commercialize our AVERT™ System including our estimates of potential revenues, costs, profitability and financial performance; our ability to develop and commercialize new products including our ability to obtain reimbursement for our products; our expectations with respect to our clinical trials, including enrolment in or completion of our clinical trials and our associated regulatory submissions and approvals; our expectations with respect to the integrity or capabilities of our intellectual property position. Management believes that these forward-looking statements are reasonable as and when made. You should not place undue reliance on forward-looking statements because they speak only as of the date when made. Osprey does not assume any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Osprey may not actually achieve the plans, projections or expectations disclosed in forward-looking statements, and actual results, developments or events could differ materially from those disclosed in the forward-looking statements.