Brisbane, Australia, 19 September 2018 — 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 $7.5 million.
The placement was managed and coordinated by Morgans Corporate Limited acting as lead manager and was oversubscribed with strong support from new and existing institutional and sophisticated investors. Under the placement, ResApp will issue 34,090,910 new ordinary shares at an issue price of 22 cents per share. The shares will be allocated under the Company’s available placement capacity under ASX Listing Rule 7.1.
Proceeds from the placement will strengthen the company’s balance sheet to enable it to effectively pursue multiple exciting projects simultaneously, including:
- Invest in sales and marketing capability to commercialise ResAppDx in Europe, Australia and Asia following the recently received excellent results from our double-blind, prospective Australian study,
- Immediately deploy resources to expand our clinical programs by conducting a US-based, double-blind, prospective adult clinical study during the upcoming US winter, and
- Investigate an array of new applications for our core technology.
Commenting on the placement, Dr Roger Aston, Chairman of ResApp, said, “We are delighted with the strong support from our existing major shareholders, and are very pleased to welcome several additional high-quality investors onto our register. The high level of oversubscription we received is a testament to our progress and to the stellar potential in our future.”
“With the completion of SMARTCOUGH-C-2, the final stage of our headline acute diagnosis clinical program, due imminently, we can now build momentum and rapidly advance multiple projects in multiple markets,” added Tony Keating, CEO and Managing Director. “The funds raised this week will accelerate the commercialisation of ResAppDx in several continents, and, by investigating new ways our unique technology can be more broadly applicable, build on our position as the world’s leading digital health company focused on respiratory disease.”
Settlement of the placement is expected to take place on Monday, 24 September 2018.
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 are underway at leading hospitals in the United States and Australia, and previous studies have demonstrated accurate diagnosis of pneumonia, asthma/reactive airway disease, bronchiolitis, croup, chronic obstructive pulmonary disease and upper respiratory tract infections. ResApp has also obtained excellent results for screening of obstructive sleep apnoea in a proof-of-concept clinical study. 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 on ResApp, visit www.resapphealth.com.au