Orthocell Limited Secures $17 Million for US Launch of Remplir

Highlights:

• Successful Capital Raise: Orthocell Limited (ASX: OCC) secured $17 million through an institutional placement, attracting strong interest from new and existing institutional investors, which will support its expansion strategy.
• Launch of Remplir™ in the US: The funds will primarily finance the US launch of Remplir™, targeting the $1.6 billion nerve repair market, as well as expansions into key markets like Singapore, Southeast Asia, Canada, and the EU/UK.
• Robust Financial Position: Following the placement, Orthocell will hold over $35 million in cash, positioning the company for significant growth, including the expected US FDA product registration for Remplir™ in Q1 2025.

Orthocell Limited (ASX: OCC), a pioneering regenerative medicine company, has successfully secured firm commitments for a $17 million capital raising through an institutional placement. This initiative, aimed at bolstering its global expansion strategy, is set to drive the launch of its innovative nerve repair product, Remplir™, into the lucrative US market, valued at approximately $1.6 billion (at the time of writing).

Strong Investor Interest

The placement attracted significant interest from a diverse array of new leading Australian and international institutional investors, alongside key existing shareholders and life science funds. Orthocell will issue up to 28,333,333 fully paid ordinary shares at an issue price of A$0.60 per share. This price reflects a 5% premium to the 60-day volume-weighted average price (VWAP) and a 12% discount to the 10-day VWAP. Importantly, the placement is not underwritten.

Strategic Use of Proceeds

The funds raised will primarily support the US launch of Remplir and facilitate expansion into other vital markets, including Singapore, Southeast Asia, Canada, and the EU/UK. Specific allocations will include scaling up manufacturing infrastructure, enhancing automation projects for cost efficiency, and expanding sales and marketing resources to oversee distribution.

Positive Outlook and Future Plans

Orthocell remains on track to release top-line results from its Remplir US market authorisation study and plans to submit its 510(k) application in Q4 2024. Upon completion of this placement, the company will have over $35 million in cash, providing a robust foundation for its global market expansion strategy. The upcoming pivotal US FDA product registration for Remplir is expected in Q1 2025, setting the stage for further growth.

Orthocell's Chair, John Van Der Wielen, expressed enthusiasm for the placement, highlighting its importance following consecutive quarters of record revenue and recent regulatory approvals. He welcomed the new investors, emphasizing the company's commitment to accelerating growth in the US market and advancing its pipeline of promising products.

This strategic capital raise positions Orthocell for significant advancements in the global regenerative medicine sector, reinforcing its mission to deliver innovative solutions in nerve repair and bone repair technologies.

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