Medical Australia (ASX: MLA) will trade firmer today after completing a $4 million placement at $0.20 per share via issue of 20,000,000 new shares issued to two strategic investors with a successful history in the healthcare sector.
Notably, the $0.20 price tag is at a premium to the prevailing share price, signifying additional confidence in the company's growth prospects.
Windfall Trust and Walker Group Holdings have subscribed for 10,000,000 shares each.
The placement is the final step in completing the acquisition and integration of animal stem cell therapy and regenerative medicine company, MediVet.
This is a company-transforming transaction, and these new funds will allow Medical to take full advantage of the growth opportunities that the MediVet business and traditional human healthcare markets represent.
In particular there is scope for significant growth in the United States, where there are over 27,000 veterinary clinics.
MediVet’s range of regenerative medicine technologies is rapidly gaining acceptance in the equine and horse racing industries, representing another solid growth platform.
Medical has also finalised the issue of 36,666,667 shares to the Vendors of MediVet, and now holds 60.5% of MediVet America, and 100% of MediVet Pty Ltd which encompasses Canada, USA, Great Britain, Continental Europe, the Middle East, Australia and the Asia Pacific Region.
The integration of Medical and MediVet into one company is well advanced with the businesses now operating at one
location in Lidcombe, New South Wales.
Medical Australia is capitalised at around $20 million post acquisition, based on the current share price.
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