The Medical Developments International Ltd (ASX: MVP) share price is on ice today following a company requested trading halt.
The ASX granted the trading pause before market open. Prior to being put into the trading halt, the last bid for the Medical Developments share price was $2.40 apiece.
What was announced?
Medical Developments advised that it will complete a fully underwritten capital raising of $30 million.
This will be comprised of a $15 million placement and a $15 million pro rata accelerated non-renounceable entitlement offer.
It hopes to achieve a cash balance of $49 million post offer to fund three core areas. Per the announcement:
Post transaction MVP's cash balance will be A$49m which will fund:
– continuing execution of the Company's direct sales strategy in the large European
market– expansion of the Australian business into the emergency sector and further growth in
the ambulance sector– further investment in business capability to enable global growth
The 1 for 9.5 pro-rata accelerated non-renounceable entitlement offer seeks to raise $15 million. It comes with 1 attaching option to acquire 1 fully paid ordinary share for every 2.5 new shares
issued.
Whereas the placement is targeted towards sophisticated investors with 1 option for every 2.5 new shares issued.
Speaking on the announcement, chairman Gordon Naylor said the company was "pleased with [its] strong revenue growth in FY22and expect this to continue into FY23".
"With a strong funding position following the capital raising, we look forward to investing to continue to deliver on our growth strategy."
The Medical Developments share price is down more than 42% this year to date.
