Special Report: Medical technology company Osteopore has successfully raised $8.5m in a share placement for further clinical trials for dental and orthopaedic applications of its regenerative bone technology and to expand its distribution network into the US.
Osteopore (ASX:OSX) executive director Geoff Pocock said the $8.5m fundraising for the company had attracted top-tier institutions onto its share register, as well as high net worth individuals, and had been well supported.
“The bulk of the funds from the share raising is going into business development to drive revenue generating opportunities for the company and to expand into the next generation of products,” Pocock said.
The company recently brought on board a distributor in the US market, and the cash injection will allow Osteopore to increase its technical and educational support to its distribution sales teams.
Osteopore has focused on serving the cranio-maxillo, or face and skull market, but it is now looking at dental and spinal markets for its next generation of regenerative bone technology products.
“We are planning clinical trials for our next generation of applications and we want to use Osteopore technology in the dental and spinal markets,” Pocock said.
OSX share price jumps
Osteopore shares were up almost 10 per cent on Friday, hitting an intra-day peak of 67c, following the capital raising resulting in the issue of 16 million shares at 53c apiece.
The company has commericalised products engineered to facilitate bone healing, including its patented technology that fabricates specific micro-structured scaffolds for bone regeneration through 3D printing and bioresorbable material.
Osteopore’s patent-protected scaffold technology is made from proprietary polymer formulations that naturally dissolve over time to leave only natural bone tissue.
This approach significantly reduces post-surgery complications associated with permanent bone implants.
The issue price represents a discount of 15.4 per cent to the company’s 15-day volume weighted average share price.
Joint lead managers for the placement were E&P Corporate Advisory and ACNS Capital Markets, and in addition to the placement, Osteopore will issue 3 million options with an exercisable price of $1.20/share expiring in August 2023.
This article was developed in collaboration with Osteopore, a Stockhead advertiser at the time of publishing. This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
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Barry Stroman was a reporter for Zerg Watch, before becoming the lead editor. Barry has previously worked for Wired, MacWorld, PCWorld, and VentureBeat covering countless stories concerning all things related to tech and science. Barry studied at NYU.