May 13, 2020 8:59am
Priced at A$3.20 per share, representing a 7% discount to both the price at the close of trading May 8, 2020 and the five-day volume weighted average price (VWAP).
MESO is trading down -$0.28 or -2.46% at $11.39
MESO has successfully completed a capital raising of US$90 million¹ (A$138 million) via a private placement of 43 million shares to existing and new institutional investors at a price of A$3.20 per share. This represents a 7% discount to both the price at the close of trading May 8, 2020 and the five-day volume weighted average price (VWAP).
The Bottom Line: A significant portion of the net proceeds will be used to scale-up manufacturing of MESO’s lead product candidate remestemcel-L for the treatment of critically ill patients suffering with diseases caused by cytokine release syndromes associated with high mortality, particularly COVID-19 acute respiratory distress syndrome (ARDS).
- Proceeds will also be used for working capital and general corporate purposes.
- The placement of 43 million shares represents 7.4% of MESO’s new total issued capital.
Settlement is expected to occur on Friday, May 15, 2020. New shares issued under the placement are expected to be issued and commence trading on the ASX on Monday, May 18, 2020.