Brisbane, Australia, 12 April 2021 — ResApp Health Limited (ASX:RAP), a leading digital health company developing smartphone applications for the diagnosis and management of respiratory disease, is pleased to advise that is has received firm commitments from institutional and sophisticated investors to raise $5.5 million (before costs) through the issue of 94,827,588 new fully paid ordinary shares at an issue price of 5.8 cents per share (“Placement”).
Funds raised from the Placement provide ResApp with the financial flexibility to progress a number of initiatives. Capital will be used to progress the hiring of key personnel allowing the company to grow its commercial partnership pipeline and expedite product development initiatives. Funds will also be used for general working capital purposes.
Existing substantial shareholder, Fidelity International has agreed to cornerstone the Placement with a $1.5 million investment. Post completion of the raising, Fidelity International will hold 9.99% of the Company.
The shares will be issued under the Company’s existing placement capacity under ASX Listing Rule 7.1. Settlement of the Placement is expected to occur on 16 April 2021.
Evolution Capital Advisors acted as the Lead Manager for the Placement. Evolution will receive 6,000,000 Lead Manager options upon the successful completion of the Placement and a fee of 6% of funds raised.
CEO and Managing Director Dr Tony Keating said: “We are very pleased to have generated such strong interest in the placement. I would like to welcome a number of new institutional investors to our register and also express our thanks to our existing shareholders who have continued to support the company.
“Funds secured from the placement will provide ResApp with a very solid footing to execute on our commercial strategy in telehealth and emerging markets, continue to innovate in areas such as COVID-19 screening and management, and further expand the opportunity to provide solutions to large pharmaceutical companies for clinical trials and disease management.”
About ResApp Health Limited
ResApp Health Limited (ASX: RAP) is a leading digital health company developing smartphone applications for the diagnosis and management of the respiratory disease. ResApp’s machine learning algorithms use sound to diagnose and measure the severity of respiratory conditions without the need for additional accessories or hardware. ResApp’s regulatory-approved and clinically validated products include ResAppDx, a smartphone-based acute respiratory disease diagnostic test for use in telehealth, emergency department and primary care settings; and SleepCheck, a smartphone application which allows consumers to self-assess their risk of sleep apnoea. Both products are CE Marked in Europe and TGA approved in Australia. For more information, please visit www.resapphealth.com.au.