MinterEllison advises on Medical Developments' capital raising

2 minute read  09.08.2022

The $30 million capital raising is intended to drive growth in the Australian and European markets.

MinterEllison is pleased to have advised Medical Developments International Limited (MVP or Medical Developments) on its fully underwritten $30 million capital raising (Capital Raising).

Medical Developments is an ASX listed pharmaceutical business and distributor of respiratory devices.

It focuses on products in the areas of pain management, asthma and chronic obstructive pulmonary disease (COPD).

According to Medical Developments, funds raised will be used to drive its Australian business expansion, European growth strategy and invest in capability to continue delivery of the Company's growth strategy.

The Capital Raising comprises a fully underwritten:

  • 1 for 9.5 pro-rata accelerated non-renounceable entitlement offer of new fully paid shares in MVP (New Shares) to eligible shareholders (Entitlement Offer) together with 1 free attaching option (Option) for every 2.5 new shares issued under the Entitlement Offer, to raise approximately $15 million; and
  • placement of New Shares to certain institutional and sophisticated investors (Placement) together with 1 free attaching Option for every 2.5 New Shares issued under the Placement, to raise approximately $15 million.

The offer price for the Placement and Entitlement Offer is $2.00 per New Share, representing a discount of 16.7% to the last closing price on Wednesday, 3 August 2022 of $2.40 per share. The Options will be exercisable at $2.80 per Option.

MinterEllison supported the team at Medical Developments on every aspect of the capital raising, including offer structuring, due diligence and preparation of a prospectus.

"Medical Developments has been providing innovative healthcare solutions since 1971. As health technology becomes more important to the global community than ever before, we're delighted to support Medical Developments as they look to grow their products and capability in Australia and around the world," said lead partner Sudharshan Senathirajah.

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