The Medical Developments International Ltd (ASX: MVP) share price is drifting deep into the red in early trade on Monday.
At the time of writing, the share trades 17% lower at $1.99 following the release of a company announcement.
What did Medical Developments announce?
The company advised it has successfully completed the institutional components of its planned fully-underwritten $30 million capital raising.
The 1 for 9.5 pro-rata entitlement offer raised $5 million in tranches of an institutional placement and entitlement offer. The company reported good support from existing shareholders.
Meanwhile, the underwritten placement raised approximately $15 million, with a total of 7.5 million new shares issued.
Medical Developments announced the funding round last week. It plans to put the funds towards the company's expansion into Europe, the Australian ambulance sector, and investment directly into the business.
It now intends to raise a further $10 million through a retail entitlement offer. The offer will open on 11 August and run until 25 August 2022.
Speaking on the announcement, Medical Developments chair Gordon Naylor said:
I would like to thank our shareholders for their support and welcome our new investors onto the MVP share register. Their strong funding support will enable our investment to continue executing on our European and Australian growth strategies.
Further developments will likely be released closer to 25 August when the retail entitlement offer is set to close.
In the last 12 months, the Medical Developments share price is down more than 52%, and 60% this year to date.
