Impedimed (ASX: IPD) share price drops after capital raising update


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The Restricted Limited (ASX: IPD) the stock price came out of a trading stop today to reverse mid-afternoon. It comes after the medical technology company provided an update on its recent capital raise.

As of this writing, Impedimed shares are trading at 16.5 cents, down 2.94%.

Hindered completes placement

One of the catalysts for the current fall in the Impedimed share price could be investor concern about impending stock dilution.

According to its press release, Impedimed announced that it had received firm commitments for its institutional placement to raise $ 35 million before fees. The company stressed that it has strong backing from existing and new institutional and sophisticated investors.

The offering will see approximately 229.5 million new common shares issued at a price of 15.25 cents each. This is a 10.3% discount from the last closing price of 17 cents on October 22 (before trading stopped).

Impedimed will use the product to support a range of strategic initiatives to address growth. In particular, it will allocate the fund to:

  • Product enhancement of the SOZO II digital health platform, including scales and improved electronics for kidney and heart failure
  • Data and software improvements, including development of corporate accounts such as integration of electronic health records and heart failure programs
  • Development and Commercialization of an App for Kidney Failure, Including Clinical Trial in End-Stage Kidney Disease and US FDA Clearance
  • General working capital to break even, including advance inventory purchases to help transition to SOZO II

In addition, Impedimed will launch a $ 5 million unsubscribed Stock Purchase Plan (SPP) that it will offer to eligible investors. The terms will be the same as for institutional placement.

The SPP closes on November 11, with the issue of new shares being set for November 18.

Management commentary

Impedimed Managing Director and CEO Richard Carreon said:

We are very encouraged by the level of investor support shown as we seek to capitalize on the significant opportunity with the recently released PREVENT trial results. Following the completion of the fundraising, we are now able to accelerate sales in oncology, while continuing to invest in our other key areas of renal failure and heart failure.

About the Impedimed share price

Despite today’s falls, Impedimed shares have gained around 90% in the past 12 months. However, the company’s stock price is about 15% lower than its 52-week high of 19 cents reached on October 19.

Based on valuation criteria, Impedimed has a market capitalization of approximately $ 247 million, with nearly 1.5 billion shares outstanding.


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