Emergency pain relief specialist Medical Developments International (ASX:MVP) has launched a fully underwritten capital raising of $10 million, comprising a $5.5 million placement to institutional investors and a $4.5 million pro rata accelerated non-renounceable entitlement offer.
Proceeds will be used primarily to fund targeted investment in growth initiatives to accelerate penetration of its Penthrox product in Australian and international markets.
The Entitlement Offer and Placement are expected to result in the issue of approximately 26.3 million new fully paid ordinary shares in MVP, representing approximately 30.5% of MVP’s existing fully paid ordinary shares on issue in total.
“The business remains on a path to positive operating cash flow. Performance over the last year has demonstrated strong strategic momentum,” Chair, Gordon Naylor, said.
The Group has reported preliminary unaudited results for FY24, with Group revenue up 3% to $33.2 million, and Underlying EBIT in line with expectations at $11.6 million (loss), $6.6 million improved on FY23, driven by higher average Penthrox prices and lower costs. Free Cashflow was $10.2 million improved.
The Group expects positive momentum in margins and earnings to continue in F25, with underlying EBIT to be strongly improved on FY24, driven by higher average Penthrox prices and operational efficiencies of ~$3-4 million. Positive operating cashflow is expected to be achieved by the end of FY25.
