Star Bright has agreed to subscribe for up to an additional 68.9 million shares in Admedus as part of a share placement raising up to $7.7 million.
Admedus has also entered into a $5 million unsecured loan facility with Star Bright for the purposes of repaying the existing, higher interest loan from Partners For Growth.
Admedus’s CEO Wayne Paterson said: “Having already indicated a commitment to provide $18 million of long-term funding to our Immunotherapies business, and having participated in the last capital raise, Star Bright have demonstrated their belief and interest in our company.
“Madam Zhang, and her company, are aligned with our mission to deliver clinically superior solutions to patients and we welcome a significant strategic investor onto our register.”
A gateway to China
Star Bright is a Hong Kong-based private investment company 100% owned by Madam Zhang Lishan whose business interests are primarily global asset and equity investments,
Star Bright recognises the potential of Admedus’ ADAPT technology to deliver tangible benefits for the global medical community and its ability to improve the lives and health outcomes of patients.
As well as their equity investment, Star Bright has indicated their interest in helping to establish an Admedus commercial base in China in the near term.
Star Bright’s shares will be issued in two tranches
The first tranche of 42.59 million shares priced at 10 cents raising $4.25 million was issued on 22 August 2018.
The second tranche of 26.28 million shares will be priced at 13.03 cents will raise an addition $3.42 million and is yet to be issued.
Notably, Star Bright has agreed not to sell the placement shares for 12 months from their issue date.
Beneficial loan facility terms
The new Star Bright $5 million unsecured loan facility has a three year term on a 5% annual coupon payable quarterly with the potential for shares to be issued in lieu of the coupon payment.
The previous loan facility has now been repaid and had a much higher interest rate of 11.75%.