AirXpanders (ASX:AXP) said today that it closed funding rounds worth approximately $15 million in total, including an approximately $11.2 million (AUD $15.7 million) rights offering and US-based private placement with approximately $3.4 million (AUD $4.6 million).
The Palo Alto-based company makes the AeroForm tissue expander for post-mastectomy breast reconstruction. The device is designed to expand and stretch the skin and underlying muscle prior to a permanent breast implant using small amounts of CO2 up to three times a day.
Through the rights offering, securities holders in Australia and New Zealand of CHESS Depository Interests could subscribe for 15 new CDS for every 16 CDIs they owned, with all unsubscribed rights issued to Canaccord Genuity Limited.
In the private placement, AirXpanders said it received approximately $3.3 million from Vivo Ventures, and an additional $50,000 from the company’s board chair.
“We are delighted to have received such strong support and uptake of entitlements from both our institutional and retail shareholders in this Rights Issue and U.S. Placement. We are confident of the outlook for the Company and the successful closing of our A$20.3 million raising places us in a sound financial position to deliver on our anticipated growth over the coming year,” prez & CEO Frank Grillo said in a prepared statement.
In August last year, AirXpanders said that it raised $15 million in debt financing from Oxford Finance, sending share prices up.