iSonea rights issues provides better than expected return of A$4.6m

Tuesday, January 03, 2012 by Angela Kean

iSonea has received strong shareholder support for its recent renounceable rights issue which received subscriptions and commitments of 107% to raise A$4.6 million.

iSonea (ASX: ISN) is now well placed financially to accelerate development and integration of the company's products with strategic partners after it raised $300,000 more than expected under its original $4.3 million renounceable rights issue.

Chief executive officer Michael Thomas said interest in the rights issue demonstrated strong shareholder support for iSonea’s new management team, and recognised the commercial potential of the company’s proprietary Acoustic Respiratory Monitoring® technologies.

“This level of support affirms the strategic direction of our company into 2012,” he said.

“Asthma and related pulmonary disorders are growing concerns in our communities and we have non-invasive technologies that help patients manage these conditions more efficiently.”

The issued shares and commitments in total represent 107% of the 860.2 million shares offered to qualifying shareholders in the renounceable rights issue that closed on 15 December 2011.

The rights issue comprised three new shares for every four held at A$0.005, with one free attaching option for every four new shares accepted, priced at A$0.007 with an expiry of 30 June 2014.

iSonea has received firm commitments for the placement of a further 59.9 million shares, which will raise $300,000.

The company is focused on securing a major strategic partner to launch, distribute and sell its Acoustic Respiratory Monitoring® products in the U.S. and other key asthma markets as it ramps up towards commercialisation.

Meanwhile, the company also recently received a price and volume query from the ASX after shares almost doubled to $0.011 on Friday 16 December 2011, up from a close of $0.006 on Thursday 15 December 2011.

The company responded to the ASX saying it is not aware of any material information that has not been disclosed to the market, which may explain the sudden investor interest.

iSonea did however refer to its announcements in late November and early December of plans to accelerate the commercialisation of its next generation asthma products in the U.S., a former substantial shareholder selling large amounts of securities and the company’s intention to begin trading on the U.S. OTC QX.

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