Advanced bone healing company Osteopore (ASX: OSX) has secured further investor support for its regeneration technology, with the company revealing it had received binding commitments for a $8.5 million placement.
Existing shareholders supported the placement, in addition to a number of new, high net worth institutions and investors.
Under the placement, Osteopore will issue more than 16 million shares at $0.53 each, which is a 13.1% discount to the company’s lasted traded price of $0.61.
Settlement of the placement is expected to occur next week.
Osteopore will use placement proceeds towards further business development and growing its revenue.
Funds will also be used to support ongoing clinical trials using Osteopore’s technology in dental and orthopaedic spaces.
Osteopore noted the placement funds and existing cash reserves now made it well positioned to increase revenue in its current regions and expand manufacturing capability to meet future demand.
As part of this, Osteopore has secured its US distributor Bioplate Inc.
Additionally, funds will be used to expand into new geographic markets.
Earlier this year, Osteopore collared Therapeutic Goods Administration approval for its 3D printed craniofacial bone healing scaffolds.
The TGA approval was for the three products: Osteomesh, Osteoplug and Osteoplug-C.
Australian regulatory approval adds to approvals in the US, Europe, Singapore and other east Asian countries.
Bone healing technology
Osteopore’s patented bone healing technology involves 3D printed scaffolds made from bioresorbable material.
The scaffolds are used as fillers over bone voids to assist with bone tissue regeneration. Then the implants dissolve naturally over time – leaving only healthy bone tissue.
At present, the scaffolds are used to fill bone voids in neurological and facial regions.
Osteopore claims this bone healing technology can significantly reduce post-surgery complications.
To-date, Osteopore’s scaffolds have been used in more than 40,000 surgical procedures.
This has generated revenue in excess of $1.3 million in the 2020 financial year.