Medical device company Anteris Technologies Global Corp (ASX: AVR) has requested a pause in trading of its shares on the ASX today while it undertakes a major capital raising.
Trading will remain halted until the earlier of the company releasing an announcement to the market or the resumption of normal trading on Friday.
So, what's going on?
A large capital raising
The company is seeking to raise US$200 million through an underwritten public offering of common stock. On top of that, underwriters have the option to place an additional US$30 million in shares if demand is strong.
It's a huge capital raise, but investors will be particularly interested in the proposed investment by US medical device giant Medtronic (NYSE: MDT).
Medtronic steps in as a strategic investor
Alongside the public offering, Anteris has also agreed to a strategic private placement with Medtronic, one of the world's largest medical device companies.
Under the agreement, Medtronic is expected to invest up to US$90 million, which would ultimately allow Medtronic to own between 16% and 19.99% of Anteris following the capital raising (depending on final pricing and allocations).
Given Medtronic's scale and pedigree, investors will no doubt be interested in seeing how the two businesses can partner and ultimately grow the value of Anteris.
What will the money be used for?
According to Anteris, the funds raised will be used to support the next stage of growth of its structural heart business.
Key priorities include:
- advancing the DurAVR® Transcatheter Heart Valve global pivotal trial
- expanding manufacturing capabilities
- funding ongoing research and development, alongside general working capital
In short, the capital raise is designed to strengthen Anteris' balance sheet and fund its clinical and commercial ambitions.
When will trading resume?
The company has indicated that trading will resume once it issues an announcement detailing the outcome and pricing of the capital raising, or at the latest when the market reopens on Friday.
Until then, the trading halt ensures that the process can be completed without prejudices to investors who might have otherwise traded shares on incomplete information.
Anteris shares have had a tough time over the past 12 months, with the share price down 21% over that period.
