ASX-listed medical device company Visioneering Technologies (VTI) is aiming to raise up to $11.1 million in new capital after securing fresh commitments from lead investors.
The US-based maker of the NaturalVue One Day Multifocal contact lens for myopes and presbyopes has engaged international stockbroker Canaccord Genuity to manage the transactions that, among other things, are intended to help the company further penetrate the US and international markets.
It comes as VTI’s shares currently trade at $0.045, a dramatic 89% drop in value from when it first listed on the ASX in March 2017 at $0.45 per share, and 51% below its trading price in March.
The company’s CEO Dr Stephen Snowdy told Insight in February the investing public is still getting to know VTI, which has undergone significant revenue growth and reduction of risk during the past two years.
He said he hopes the market “soon picks up on those accomplishments”. On Thursday, VTI announced the new capital raising efforts could generate up to $11.1 million.
The deal comprises of:
- The issue of CHESS Depository Interests (CDI) to TIGA Trading Pty Ltd and Thorney Technologies Ltd at $0.045 per CDI, in order to raise $1 million.
- A fully underwritten, non-renounceable entitlent offer of 9 CDIs for every 19 CDIs, also at $0.045, to raise approximately $5.8 million. This rights offering will only be available to Australian and New Zealand share and CDI holders.
- The issue of secured convertible notes to Thorney and its affiliates to raise between $3.3–4.3 million.
As well as international and US expansion, the new capital is also expected to fund product development and inventory purchases, as well as general working capital.
Snowdy said: “We are please that our lead investors continue to support our strong progress and increase their commitments.
“The cash raised in this financing puts our balance sheet on solid ground, allows us to continue our strong growth both inside and outside the US, and strengthens our position as we grow our negotiations with international partners for Europe and Asia.”
He added that VTI recently reported more than 100% year-on-year growth in shipment to eyecare professionals (ECPs) when compared to the first quarter of 2018.
“That momentum has continued into both April and May 2019, with each month demonstrating well in excess of 100% growth shipments to ECPs compared to April and May of the prior year. We are performing well to expectation and we rain confident in our revenue guidance for 2019,” he said.