Palo Alto, Calif.-based AirXpanders said the over-subscribed private placement of nearly 8.8 million shares at 56.8¢ apiece (A76¢) included both new and existing institutional investors. The proceeds are earmarked for expanding AeroForm’s commercial footprint in Australia and prepping the sales & marketing for a U.S. launch during the 1st quarter next year.
AirXpanders said it’s also transferring its manufacturing operation to Costa Rica.
“This is an exciting time for AirXpanders as we continue to successfully execute our Australian growth strategy while investing in preparation for the U.S. launch of our AeroForm technology,” CEO Scott Dodson said in prepared remarks. “We welcome the strong support from both existing and new institutional shareholders, who have shown a strong vote of confidence in AirXpanders.
“This additional capital strengthens our balance sheet as we prepare for commercial launch in the U.S., pending receipt of FDA clearance, and will help us complete the automation and transfer of our manufacturing to Costa Rica and continue our growth in the Australian market, where we have achieved tremendous success since launching in July last year,” Dodson said.
AirXpanders also said the FDA is done with the initial review of its bid for de novo approval for AeroForm.
“AirXpanders is now in the final stage of reviewing its response to FDA and expects to submit the response to the FDA within the next 1-2 weeks,” the company said.
AXP shares closed down -4.5% at 63.5¢ (A85¢) today.