- 62.5 million new ordinary shares to be issued at a price of $0.20 per share.
- Oversubscribed placement to new and existing institutional and sophisticated investors.
- Provides funds to expedite US FDA approval for the adult diagnostic test, expand US market opportunity into in-clinic use, expand global opportunity into Europe and Asia, and accelerate development of respiratory disease management tools.
ResApp Health Limited (ASX: RAP), the developer of smartphone medical 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 $12.5 million. The placement was significantly oversubscribed with strong support from new and existing institutional and sophisticated investors. Under the placement, ResApp will issue 62.5 million new ordinary shares at $0.20 per share.
The proceeds from the placement will be used to:
- Expedite US FDA approval for the adult diagnostic test by accelerating US clinical studies in adults.
- Expand US market access beyond telehealth into in-clinic use, including in emergency department and outpatient settings.
- Expand the global market opportunity into Europe and Asia by filing regulatory submissions and ramping up partnership discussions.
- Accelerate development of tools for managing chronic respiratory diseases such as asthma and chronic obstructive pulmonary disease (COPD). Globally, asthma affects as many as 334 million people (ref: Global Asthma Network) and COPD affects 65 million people (ref: WHO).
“With the high levels of accuracy that we have achieved in our clinical studies to date, the market opportunity for ResApp’s technology has grown significantly larger today than it appeared to be when we listed nine months ago. Servicing the telehealth industry was our original goal and this remains an enormous opportunity, but we have since received great interest from practitioners in emergency rooms, clinics and outpatient settings where the great majority of patients are treated. We have also seen telehealth growing rapidly in Europe and Asia (including Australia) and we plan to respond by filing for regulatory approval in these countries and developing partnerships to enter their markets,” said Dr Tony Keating, CEO and Managing Director. “The additional funds raised this week will allow us to address all of these opportunities effectively and to vastly increase ResApp’s commercial potential. The inclusion of new, high quality institutional shareholders further demonstrates ResApp’s global appeal and ensures that we have the financial backing to pursue all of the exciting prospects available to us.”
Jett Capital Advisors, Empire Capital Partners and CPS Capital Group acted as joint lead managers to the placement. Fees of 5% of the total funds raised under the placement are due to be paid, together with 4.5 million unlisted options (exercise price of $0.28, 3 year exercise period, 12 months escrow from date of issue), 1.87 million unlisted options (exercise price of $0.3675, 3 year exercise period, 12 months escrow from date of issue) and 1.02 million new ordinary shares.
The trading halt that has been in place since Monday, 18 April 2016 will be lifted from the commencement of trading today.
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About ResApp Health Limited
ResApp Health Limited is a digital health company developing smartphone applications for the diagnosis and management of respiratory disease. The technology is based on machine learning algorithms that use sound alone to diagnose and measure the severity of respiratory conditions without the need for additional hardware. The algorithms were initially developed by The University of Queensland with funding from the Bill and Melinda Gates Foundation. ResApp has a multi-site clinical study underway and preliminary results demonstrated accurate diagnosis of pneumonia, asthma/viral wheeze, bronchiolitis, croup and upper respiratory tract infections in children. Approval has been recently received to extend the study to adults at two major Australian hospitals. Markets for ResApp’s technology include telehealth use through partnerships with telehealth service providers, emergency department and regular clinic use by healthcare providers, at-home use by consumers and working with global aid and humanitarian organisations to deliver tools for the developing world.
For more information on ResApp, visit www.resapphealth.com.au.
ResApp Health Limited
ABN 51 094 468 318
Level 12, 100 Creek St, Brisbane, QLD 4000
© 2020 ResApp Health Limited. All rights reserved. US Patent No. 10,098,569, Australian Patent No. 2013239327, Japanese Patent No. 6,435,257 and Patents Pending. ResApp Health®, the ResApp Health logo and ResAppDx® are registered trademarks of ResApp Health Limited in the United States and other countries.