Log in or Register for enhanced features | Forgotten Password?
White Papers | Suppliers | Events | Report Store | Companies | Dining Club | Videos
Patient Care
Patient Monitoring
Return to: MDBR Home | Patient Care | Patient Monitoring

AirXpanders raises $34m in private placement

Published 30 January 2017

AirXpanders, a medical device company focused on the design, manufacture, sale and distribution of the AeroForm Tissue Expander System, has received commitments from sophisticated and professional investors to subscribe for 48,913,044 CHESS Depositary Interests (CDIs) (representing 16,304,348 shares of Class A Common Stock) at A$0.92 ($0.70 USD) per CDI to raise A$45m ($34m) (Placement).

The Placement will be completed in two tranches with Tranche 1 consisting of 26,536,500 CDIs (representing 8,845,500 shares of Class A Common Stock) to be issued under the Company's capacity in accordance with ASX Listing Rule 7.1 and 7.1A.

 Tranche 2 will consist of 22,376,544 CDIs (representing 7,458,848 shares of Class A Common Stock) to be issued subject to stockholder approval during a special meeting of stockholders (Special Meeting) to be convened by the Company on or about 17 February 2017.

The funds raised from the Placement will be primarily used by the Company for:

Building inventory for the U.S. market;

Acceleration of investment for U.S. sales and marketing, including hiring of U.S. sales force;

Completion of expansion of commercial manufacturing capacity in Costa Rica; and

General working capital

Canaccord Genuity (Australia) Limited acted as the sole lead manager to the Placement.

"Following receipt of FDA de novo clearance in December 2016, we are now moving ahead with the commercial launch of AeroForm in the United States.

“This raise provides us with the capital to expedite the build out of our U.S. sales force, and increase our manufacturing capacity to ensure we have the inventory to meet the expected demand for the product," said Scott Dodson, President and CEO of AirXpanders.

"It's an exciting time for AirXpanders, and we thank our existing and new investors for their support."

The CDIs subscribed for under Tranche 1 of the Placement are expected to be issued on or around 3 February 2017. The CDIs will rank equally with existing AirXpanders CDIs.

Founded in 2005, AirXpanders designs, manufactures and markets innovative medical devices to improve breast reconstruction.

The company's AeroForm Tissue Expander System, is used in patients undergoing two-stage breast reconstruction following mastectomy. Headquartered in Palo Alto, California, AirXpanders' vision is to be the global leader in reconstructive surgery products and to become the standard of care in two-stage breast reconstruction.



Source: Company Press Release