Orthocell to raise $18m

Bio-therapeutic company Orthocell has received commitments to raise $13 million from a share placement and up to a further $5 million from a share purchase plan, primarily to accelerate the commercialisation of its CelGro flagship product.

CelGro is a collagen medical device that augments bone, tendon and nerve repair and regeneration.

Orthocell said the capital raising would be used to accelerate regulatory approvals of the product in Australia, US and Europe, as well as advance the development and commercialisation of its other leading product, Ortho-ATI.

Ortho-ATI is a cell therapy treatment for chronic degenerative tendon injuries.

Under the placement, the company will issue 26 million shares at 50 cents per share, with Bell Potter Securities acting as lead manager.

Orthocell shareholders in Australia, New Zealand and Hong Kong can also subscribe for up to $30,000 worth of shares on the same terms as the placement.

Founder and managing director Paul Anderson said the capital raising would help the company establish its leading products in key markets.

“Orthocell is well placed to further progress regulatory approvals, establish commercial infrastructure and execute on its partnering strategy, delivering significant shareholder value in the near term,” Mr Anderson said.

The announcement marks the second major capital raising for the company this year, with $10.6 million raised from a share placement in June to accelerate the commercialisation of CelGro.

Shares in Orthocell were down 7.96 per cent to trade at 52 cents per share, as at 2:25pm AEDT.