Osteopore Limited Announces AU$20 Million Capital Raise via Convertible Notes

Highlights :

• Capital Raise: Osteopore Limited (ASX: OSX) plans to raise up to AU$20 million through redeemable convertible notes (RCNs), with an interest rate of 4% per annum.
• Usage of Funds: The funds from the RCN issuance will support the company's ongoing business operations, future developments, and efforts to reduce existing loans.
• Growth Momentum: Osteopore has experienced six consecutive quarters of revenue growth, with its bioresorbable implants utilized in over 120,000 surgeries, bolstered by a distribution agreement with Zimmer Biomet.

Osteopore Limited (ASX: OSX), an Australian-Singaporean leader in regenerative medicine specializing in 3D-printed biomimetic and bioresorbable implants, has unveiled plans to raise up to AU$20 million through a redeemable convertible note (RCN) issue. The capital raise is contingent upon formal documentation, shareholder approval, and relevant regulatory clearances.

Details of the Capital Raise

Osteopore has entered into a term sheet with Advance Opportunities Fund and Advance Opportunities Fund I (AOF I) for the issuance of these notes, which will be issued in four tranches of AUD 5 million each. The notes will earn interest at an annual rate of 4% and will mature 36 months after the initial drawdown is completed. Notably, noteholders will have the option to convert their notes into shares at a conversion price of 80% of the average closing price over a selected five-day trading period.

Purpose of the Funds

The proceeds from this capital raise will be utilized for various operational purposes, including ongoing business activities, future developments, and the potential reduction of existing loans. Osteopore has demonstrated robust growth, achieving six consecutive quarters of revenue increases, with its bioresorbable implants now utilized in over 120,000 surgeries.

Growth Potential and Market Confidence

Mark Leong, Osteopore’s Executive Chairman, emphasized that this capital raise aligns with the company’s current growth phase and strategic ambitions. The flexibility offered by the RCN will facilitate continued investment in regulatory approvals and product advancement, ultimately reinforcing Osteopore’s competitive market position.

Further details regarding the subscription agreement will be provided in the upcoming Notice of Extraordinary General Meeting (EGM), expected to be issued soon. At the time of writing, Osteopore remains focused on capitalizing on emerging opportunities in the regenerative medicine space.

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