Anteris said in a statement to the ASX on Friday that it had raised US$320 million through the issue of new shares at US$5.75 per share.

The raise will bolster the company's size by more than 60%, with the $467 million raise in Australian dollar terms larger than its ASX value of $370 million and its NASDAQ listing of $394 million.

Key partner on board

Of this new raise, US$90 million was stumped up by Medtronic Plc (NYSE: MDT), which Anteris said was the world's largest medical technology company.

The smaller company said in its statement:

Anteris and Medtronic are aligned around the belief that reshaping the Transcatheter Aortic Valve Replacement (TAVR) market requires advancing clinical science and valve design while maintaining rigorous standards for durability, hemodynamics, and long‑term patient outcomes.

Anteris Chief Executive Officer Wayne Paterson said the investment from Medtronic and other investors was a strong vote of support for the company's plans.

This strategic investment, along with our underwritten offering of common stock, represent an important milestone for our company. It also provides strong validation of our program from the capital markets and a major strategic innovator. The investment is one aspect of a collaboration that may expand into other strategic areas in the future. Anteris has developed a clinically important, evidence-supported product designed to improve the lives of patients with aortic stenosis as we advance toward regulatory approval.

Clinical trial now well-funded

The funds raised will help Anteris complete the Paradigm clinical trial, which is evaluating the company's DurAVR THV System in comparison to commercially available transcatheter aortic valve replacement (TAVR) devices in patients with severe aortic stenosis.

Medtronic Vice President Jorie Sokin said Anteris was a recognised pioneer in the TAVR sector.

He added:

Our investment in differentiated innovation like the DurAVR THV technology — which has the potential to offer improved valve performance in a balloon-expandable platform — is core to our commitment to define and drive the future of TAVR, meeting the needs of more aortic stenosis patients and heart teams with a comprehensive portfolio.

While it was founded in Australia, Anteris said it also has a significant presence in Minneapolis, and "is a science driven company with an experienced team of multidisciplinary professionals delivering restorative solutions to structural heart disease patients''.

Anteris shares were 5.5% higher in early trade at $9.40.

The post Heart tech firm's shares surge after huge capital raise appeared first on The Motley Fool Australia.

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.

The post Here's why Anteris shares are in a trading halt today appeared first on The Motley Fool Australia.