Allegra Orthopaedics Ltd (ASX:AMT) has received commitments to raise $1.3 million via a share placement from individuals within the healthcare industry, at an issue price of $0.15 per share.
Allegra is an orthopaedic manufacturer having a global license to the composite biocompatible ceramic material known as Sr-HT- Gahnite from the University of Sydney.
The funds raised from the placement will be used for ongoing working capital required to continue investment in the commercialisation of the Sr-HT-Gahnite bone project.
In August, the company revealed a histology report indicating all samples containing the Sr-HT gahnite scaffolds showed promising ingrowth of bone through the scaffold.
Subsequently, Allegra decided to commence with interbody cervical spinal cages as its initial product offering after considering the various commercial applications of this unique bone technology.
The new funds will allow the establishment of a pilot manufacturing facility, regulatory process submissions for various certifications and the manufacture of a 3D custom spinal cage.
In addition to the above placement, the company is raising up to a further $1.4 million via a private placement at an issue price of $0.15 per share.
Allegra’s shares closed at $0.16 on Friday, rising 23% from the previous day’s close.