Orthocell to raise $30m, plans to further enhance rollout of Remplir in US

Murdoch-based Orthocell has announced plans to raise $30 million, as it aims to build further momentum behind its US ambitions.

The bio medtech company told the market on Friday it would issue approximately 23 million shares at an issue price of $1.30 per share. 

This price is a 9.1 per cent discount to Orthocell’s final closing price of $1.43 prior to ducking into its trading halt earlier this week.

Proceeds from the capital raise will be allocated toward rising the manufacturing capacity at its WA-based facility from 100,000 to 400,000 units per year, along with additional fast-tracking of sales ramp up activities in the US.

“We have built significant momentum in the commercialisation of Remplir and the funds from the capital raising will be focused on accelerating that process,” Orthocell managing director Paul Anderson said.

“We greatly appreciate the support we have received from new and existing institutional and high net worth investors and particularly welcome our new investors from the US. 

“We see that as a significant endorsement of our strategy and progress to date as well as the near-term revenue that can be generated from the US market.”

During its most recent quarter, Orthocell posted its sixth consecutive quarter of record sales revenue, reaching $3 million. 

The company’s rollout of Remplir in the US, which began following approval in April, is presently ahead of schedule.

So far, Remplir’s network across the US has extended more than 25 states, which equates to 40 per cent of the American population.

Last month, Orthocell also flagged a new use case for Remplir, announcing that it had been used in around 40 surgical cases by Australian urologists in nerve-repairing robotic-assisted radical prostatectomies. 

The company said Remplir had aided recovery of both erectile function and urinary continence following surgery.

Orthocell last traded at $1.33, down 5 per cent, as of 10.59am AWST.