Brisbane, Australia, 21 February 2020 — ResApp Health Limited (ASX:RAP), a leading digital health company developing smartphone applications for the diagnosis and management of respiratory disease, is pleased to announce that it has received firm commitments from institutional and sophisticated investors to raise $5 million (before costs). Funds raised will be used to accelerate European commercialisation and for general working capital.
ResApp’s CEO and Managing Director, Tony Keating, said “In response to a rapidly growing commercial pipeline, we will now accelerate our path to revenue by expanding our team on the ground in Europe at a greater pace. A stronger balance sheet also strengthens our negotiating position as we enter into deals with commercial partners. With a number of major milestones expected during the next six months, we are very excited by the company’s trajectory.”
“We are extremely pleased to have received strong demand for the placement, including from our existing major shareholders. We also welcome a number of new institutional investors to our share register in what will be a transformative year for the company,” added Roger Aston, Chairman of ResApp.
The placement received strong support from institutional and sophisticated investors. Under the placement, ResApp will issue 25,000,000 new ordinary shares at an issue price of 20 cents per share. The shares will be issued under the Company’s available placement capacity under ASX Listing Rule 7.1. Ashanti Capital Pty Ltd and Morgans Corporate Limited acted as Joint Lead Managers for the placement.
Settlement of the placement is expected to take place on Wednesday, 26 February 2020.
About ResApp Health Limited
ResApp Health Limited (ASX: RAP) is a leading digital health company developing smartphone applications for the diagnosis and management of respiratory disease. ResApp’s machine learning algorithms use sound to diagnose and measure the severity of respiratory conditions without the need for additional hardware. Clinical studies have demonstrated accurate diagnosis of lower respiratory tract disease, upper respiratory tract infection, pneumonia, bronchiolitis, croup, asthma exacerbation/reactive airway disease, chronic obstructive pulmonary disease, chronic obstructive pulmonary disease exacerbation and obstructive sleep apnoea. ResApp’s smartphone-based acute respiratory disease diagnostic test, ResAppDx-EU, is CE Marked in the European Union and TGA approved in Australia. Potential customers of ResApp’s products include healthcare providers in telehealth, emergency department, urgent care and primary care settings as well as humanitarian organisations in the developing world. For more information, visit www.resapphealth.com.au