CONNEǪT Health (ASX:CǪT) has secured $3.1 million (before costs) through a placement of new fully paid ordinary shares at $0.045 per share, targeting institutional and sophisticated investors.
The placement, strongly supported by both new and existing shareholders, includes a $1.2 million subscription from C2 Ventures, the company's largest shareholder, owned by directors Craig Cooper and Niall Cairns.
Issuance of shares to C2 Ventures remains subject to shareholder approval at the next general meeting.
The placement price reflects a 15.1% discount to the company's last closing price and a 6.3% discount to its 15-day volume weighted average price.
Under the placement, 42.2 million shares will be issued under the company’s ASX Listing Rule 7.1 capacity on Dec. 31, with an additional 26.7 million shares reserved for C2 Ventures pending shareholder approval. All new shares will rank equally with existing ordinary shares.
Stralis Capital Partners acted as the sole lead manager for the placement, receiving a 3% management fee and a 3% selling fee on proceeds, excluding contributions from C2 Ventures or other directors.
Proceeds from the placement will fund manufacturing of the CONNEǪT Pulse C device, sales and marketing initiatives, product development, regulatory expenses, general working capital, corporate operations, and costs associated with the placement.
At the time of reporting, CONNEǪT Health's share price was $0.054.