The 4DMedical Ltd (ASX:4DX) share price will be on watch this morning. This comes after the company made a late market announcement yesterday regarding a completed share purchase plan (SSP).
Successful completion of SSP
The 4DMedical share price could be on the move today as investors took the time to digest its latest news.
According to yesterday’s release, 4DMedical advised that it has successfully completed its SSP underpinned by strong support.
The company raised $6 million, doubling the original offer of $3 million due to receiving a number of overwhelming applications. In total 1,873 applications were received by existing eligible shareholders, amounting to $32 million of demand.
The offer price of $1.55 per share represents a 10% discount to the last closing 4DMedical share price of $1.72. 4DMecial stated it will scale back applications, taking into consideration the number of shares applied for, and their current holdings.
Over 3.87 million new shares are scheduled to be issued, reflecting 1.33% of the company’s entire ordinary shares on issue. The newly created shares will be allotted on Wednesday 7 April and be available to commence trading the following day.
This follows the recently successful $40 million institutional placement completed on 4 March 2021.
Comments from the CEO
4DMedical founder and CEO, Andreas Fouras, touched on the company’s plan on how to spend the acquired funds. He said:
The proceeds from the placement and SPP, together with the $28.9 million of funding from the MRFF Frontiers initiative, provide 4DMedical with a significantly enhanced capability to execute the long-term commercialisation strategy for XVD Scanners, which will open up an additional revenue stream for the business and drive the adoption of XV LVAS at medical institutions.
The Company now also has balance sheet flexibility to pursue future growth opportunities.
4DMedical share price summary
Over the past 12 months, the 4DMedical share price has increased close to 10% but is down around 30% year-to-date. The company’s shares reached an all-time high of $2.98 late last year.
On valuation grounds, 4DMedical presides a market capitalisation of about $349.6 million, with 203.3 million shares outstanding.
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More reading
- What’s with the 4DMedical (ASX:4DX) share price today?
Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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