As the buy now, pay later (BNPL) sector rages on, companies like Afterpay Ltd (ASX: APT) and Zip Co Ltd (ASX: Z1P) are having to make room for new players such as Deferit. Whilst Deferit is not currently listed on the ASX, it has been busy raising capital of late.

Yesterday, my Fool colleague Sebastian Bowen wrote about the up and coming Sweden-based BNPL company Klarna, which was recently valued at approximately US$31 billion.

Today, let’s take a closer look at Deferit and what it has been up to.

Deferit raises $15 million from investors

According to an article in yesterday’s Australian Financial Review, Deferit has secured $15 million in investor funding.

The company does not categorise itself as a BNPL service, although there are similarities between its business model and those of traditional ASX BNPL players.

Deferit’s offering involves paying the bills of its customers upfront in exchange for being repaid in four fortnightly payments. The business charges $6 per month for its service.

This varies from traditional BNPL services in that the company does not fund discretionary items. Also, according to Deferit, its service does not build credit like traditional BNPL providers since the bills are already owing.  

The business claims to have 250,000 customers and estimates it has paid more than $100 million of bills.

Is Deferit positioning for an IPO?

Business News Australia reported that Deferit will use the funding to ramp up marketing activities and grow its team. It further notes that Deferit has witnessed a 150% growth in its business over the past twelve months.

So while Deferit is not listed on the ASX, it seems like the business has its eye on expansion.

With the Afterpay share price booming nearly 300% higher over the past twelve months and the Zip share price delivering growth not far behind it, it seems Deferit is ready for its piece of the growing consumer fintech sector action.

Foolish takeaway

Yesterday, ASX technology shares had their best day since 2 February 2020. Afterpay and Zip each posted gains of more than 4% and 6% respectively.

While the S&P/ASX 200 Information Technology Index (ASX: AXIJ) technology rose by 4.2%, the S&P/ASX 200 Index closed yesterday with a 1.36% gain.

As long as the BNPL sector continues posting such big gains, we’re likely to witness a new crowd of offsprings, like Deferit, entering the market and possibly gearing up for an ASX premier.  

More reading

• Why Afterpay, IOUpay, Liontown Resources, & Redbubble are racing higher
• Here’s why the Afterpay (ASX:APT) share price fell 11% in February
• Here are the best performing ASX 200 tech shares in Februrary
• Why did the Zip (ASX:Z1P) share price rocket 43% in February?
• Leading brokers name 3 ASX shares to buy today

Gretchen Kennedy has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia owns shares of AFTERPAY T FPO. 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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There are some exciting ASX shares out there that are rated as buys by some brokers.

The businesses in this article are ones that more than one broker think look like attractive value right now because of the profit growth plans of the business. Brokers can be wrong sometimes, but it may suggest a high-conviction idea if several brokers like the same ASX share:

Reject Shop Ltd (ASX: TRS)

The Reject Shop is a discount retailer with a national store network. The company is currently liked by at least three brokers.

Reject Shop’s recent half-year result included revenue and a gross profit margin which wasn’t quite as good as broker Morgan Stanley was expecting, but the net profit was better than expected.

The broker thinks that Reject Shop is going to have a good FY21 and would impress the market if it unveiled more of its strategy and goals.

In that half-year result, Reject Shop reported that whilst sales declined by 0.3% to $434.3 million, underlying earnings before interest, tax, depreciation and amortisation (EBITDA) went up 20.8% to $31.1 million and earnings before interest and tax (EBIT) grew 44.9% to $23.3 million. Underlying net profit rose 46.5% to $16.3 million and statutory net profit grew 79.3% to $17 million.

The ASX share continues to work on its costs and efficiencies to improve profit margins. After it has the desired cost base, it will roll out stores in places that make sense. It’s also trialling an online offering as well.

Morgan Stanley thinks the Reject Shop share price is valued at 17x FY22’s estimated earnings. It has a share price target of $10 for Reject Shop.

Idp Education Ltd (ASX: IEL)

The education business is rated as a buy by at least five brokers, including Macquarie Group Ltd (ASX: MQG).

Macquarie thinks that the business seems to be recovering quicker than expected thanks to a high level of demand from students, even though COVID-19 has ravaged the world.

The broker said that lead indicators suggest that the international English language testing is projected to go back to previous levels by the end of the 2021 calendar year for the ASX share.

Macquarie has been impressed by the investing that the company has done to improve its technology, which will help the profit margins as the industry gets back to normal.

In the FY21 half-year result, the company reported a 26% decline of English language testing revenue to $158.3 million, total EBITDA fell 33% to $68 million, EBIT dropped 43% to $47.3 million and net profit dropped 45% to $29.7 million. It announced a dividend of 8 cents per share for shareholders.

Management said that it’s encouraging to see the ASX share’s recovery is already underway when comparing the first half of FY21 to the second half of FY20. The company also said that it has through-the-cycle appeal as volumes rebounded with lockdowns and restrictions easing.

According to Macquarie, the IDP Education share price is valued at 57x FY22’s estimated earnings.

More reading

• These are the latest ASX shares to be hit by broker downgrades
• ASX 200 Weekly Wrap: Friday carnage ruins last week of ASX earnings
• 2 ASX shares rated as strong buys by brokers for March
• ASX 200 drops, Appen sinks, Nine jumps
• Why Bega, Blackmores, IDP Education, & SeaLink shares are zooming higher

Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Idp Education Pty Ltd. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. 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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In late morning trade on Tuesday, the S&P/ASX 200 Index (ASX: XJO) is on course to record another solid gain. At the time of writing, the benchmark index is up 0.45% to 6,820 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are sinking:

Limeade Inc (ASX: LME)

The Limeade share price has continued its slide and is down a further 3% to 97 cents. Investors have been selling the employee experience software company’s shares since the release of its full year results last week. Investors appear disappointed with its guidance for FY 2021. Management expects revenue of US$50 million to US$53 million. This is a decline on FY 2020’s revenue of US$56.6 million. Falling customer numbers is weighing on its performance.

Oil Search Ltd (ASX: OSH)

The Oil Search share price is down 1.5% to $4.25. Investors have been selling the energy producer’s shares following a pullback in oil prices overnight. It isn’t just Oil Search that is under pressure today. The S&P/ASX 200 Energy index is down 1% at the time of writing.

Platinum Asset Management Ltd (ASX: PTM)

The Platinum share price has fallen 3.5% to $4.60. Today’s decline has little to do with the fund manager’s performance and is predominantly due to its shares trading ex-dividend this morning for its 12 cents per share fully franked interim dividend. Eligible shareholders can look forward to receiving this dividend in a couple of weeks on 18 March.

Whispir Ltd (ASX: WSP)

The Whispir share price is down 4% to $3.72. Investors have been selling the communications workflow platform provider’s shares following the completion of a $45.3 million placement to new and existing institutional investors. Whispir raised the funds at an offer price of $3.75 per share, which represents a 3.6% discount to its last close price. The proceeds will be used to accelerate its growth strategy in key markets.

More reading

• Why the Whispir (ASX:WSP) share price is under pressure today
• Here’s why the Limeade (ASX:LME) share price is crashing 32% lower
• Why Fortescue, Genworth, Limeade, & Northern Star shares are sinking
• Why Limeade (ASX:LME) shares are bouncing around today
• Top brokers name 3 ASX shares to sell today

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Whispir Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Limeade, Inc. The Motley Fool Australia has recommended Whispir Ltd. 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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Ansell Limited (ASX: ANN) shares are on the rise this morning after the company provided an update regarding its share buyback program. At the time of writing, the Ansell share price has edged 1.68% higher to $37.47.

Let’s take a look at what the company announced.

What did Ansell announce?

In a statement to the ASX this morning, the personal protection and glove manufacturer announced it may recommence its share buyback program from 5 March 2021. This date is the day after the company’s dividend reinvestment program pricing period concludes.

Ansell had previously announced, at its November 2020 AGM, that it would pause the share buyback program for 12 months. The buyback, which was announced in October 2019, was initiated due to “an absence of sufficient opportunities and [an] excess of cash on the balance sheet.”

That announcement was prior to the COVID-19 pandemic. Since then, the company has seen unprecedented demand for its rubber gloves and personal protection equipment.

In its half-yearly update for FY21, Ansell recorded a 24.5% increase in sales on the prior corresponding period (pcp). As well, earnings per share (eps) and profit attributable both rose – by 65.5% and 61.9% respectively on the pcp. The company partially attributed these increases to the pandemic.

What is a share buyback?

According to the Commonwealth Bank of Australia (ASX: CBA):

A buyback is when a company offers to re-purchase some of its shares from existing shareholders.

The net effect is a reduction in the total number of a company’s shares on issue. This is generally seen as a way for companies to boost shareholder returns because after the buyback a company’s profit will be spread across fewer shares.

CommBank suggests some of the reasons for a stock buyback include:

• Using surplus cash the company doesn’t plan to use for acquisitions.
• Making a change to the company’s capital structure. This is because changing the amount of shares on issue will have an impact on things like the company’s ratio of debt to equity.
• Giving a boost to shares if the company feels they are undervalued.

The buyback will result in either a capital gain or loss, depending on the price you purchased the share at. This will have tax implications for the investor.

Ansell share price snapshot

The Ansell share price has soared nearly 115% over the past five years. Over the course of the last 12 months, Ansell shares have gained around 27%. Shares in the company reached a 52-week high of $42.91 in November 2020 and a low of $21.43 in March 2020.

Based on the current Ansell share price, the company has a market capitalisation of around $4.8 billion.

More reading

• ASX 200 up 0.5%: BHP impresses, NAB rises, Zip rockets
• Why the Ansell (ASX:ANN) share price is lifting this morning
• 2 COVID-19 ASX shares to buy
• 2 COVID-19 amplified ASX shares to buy

Motley Fool contributor Marc Sidarous has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Ansell Ltd. 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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The Province Resources Ltd (ASX: PRL) share price ripped as much as 460% on 17 February after the acquisition of a Zero Carbon Hydrogen project located in the north of Western Australia.

After surging from 2.6 cents to a high of 14.5 cents, its shares cooled off in recent days to around the 8.5 cent range.

Today, the Province Resources share price has soared again, up 10.47% to 9.5 cents at the time of writing. This after the company announced the start of its feasibility studies data collection at the Zero Carbon Hydrogen project. 

Why the Province Resources share price is lifting again

Province Resources announced that it has secured the normally long lead time Fulcrum3D SODAR (sonic detection and ranging) weather monitoring station.

The monitoring station will be deployed in the next 4 weeks at its HyEnergy Zero Carbon Hydrogen project for data collection required to support feasibility studies.

The station plays a critical role in collecting preliminary wind and solar data every 10 minutes within the project area to assess the wind and solar resource potential. The data collected will enable the proposed wind turbines and solar array network to be optimised, prior to the final project scope and scale decision point. 

The Carnarvon region in Western Australia possesses significant solar and wind potential. Its annual mean wind speed of 25.5 km/h makes it the 4th windiest location in the state. Furthermore, the region does not have the same record of risks such as cyclones compared to high profile mining regions such as Pilbara, making it a low-risk wind farm location. 

In terms of solar, the region has a very rich solar resource averaging 211 sunny days per year. Low competing land use and high solar resource are ideal for a large scale solar array network. 

The next 12-18 months 

Province Resources has already hit the ground running with renewable power generation feasibility studies. 

Following the studies, the company has cited plans to execute a binding memorandum of understanding (MOU) with an independent power provider to develop the renewable power required for the plant. As well as initiate discussions with potential offtake agreements and with the Australian Gas and Infrastructure Group. 

Based on the current Province Resources share price, the company has a market capitalisation of $80.8 million.

More reading

• Broker rates these 3 small cap ASX shares as a speculative buy 
• 4 ASX hydrogen shares powering forward in 2021
• Here’s why the Province Resources (ASX:PRL) share price has powered up 253% today

Motley Fool contributor Kerry Sun 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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The Whispir Ltd (ASX: WSP) share price has returned from its trading halt and is tumbling lower on Tuesday morning.

At the time of writing, the communications workflow platform provider’s shares are down 4% to $3.72.

Why is the Whispir share price tumbling lower?

This morning Whispir announced the successful completion of an institutional placement.

According to the release, the company has raised a total of $45.3 million via a placement to new and existing institutional investors at an offer price of $3.75 per share. This represents a discount of just 3.6% to its last close price.

This placement leaves Whispir with a pro forma cash balance of $54 million.

Why is Whispir raising funds?

The release explains that the proceeds from the placement will be used to accelerate Whispir’s growth strategy in its three key markets of Australia and New Zealand (ANZ), Asia, and North America, and capitalise on global digital transformation and automation trends.

It will also strengthen its balance sheet to provide the company with working capital flexibility.

Whispir’s CEO, Jeromy Wells, commented: “Since our IPO in June 2019, Whispir has been executing on its growth strategy, increasing ARR, revenues and customers within our mature ANZ business and growing operations in Asia and North America.”

“Digitisation tailwinds provide a significant opportunity for us to fast-track our product roadmap, delivering higher-value products to drive platform utilisation and adoption. Funds raised will also enable us to increase our presence within the competitive North American market, where we are targeting underserved SME and SMB organisations.”

Share purchase plan

In addition to the institutional placement, Whispir is seeking to raise up to $3 million through a share purchase plan. These shares will be offered to eligible shareholders at the same price of $3.75 per new share.

Though, with the Whispir share price currently trading below this price, demand for its share purchase plan may not be overly strong unless there’s an improvement between now and its closing date on 19 March.

More reading

• Top brokers name 3 ASX shares to buy next week
• Why Cochlear, Goodman, Lovisa, & Whispir shares are surging higher
• Why the Whispir (ASX:WSP) share price is surging 10% higher today
• 3 exciting small cap ASX shares to put on your watchlist
• Why the Whispir (ASX:WSP) share price is on the rise today

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Whispir Ltd. The Motley Fool Australia has recommended Whispir Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Why the Whispir (ASX:WSP) share price is under pressure today appeared first on The Motley Fool Australia.

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In morning trade on Tuesday, the S&P/ASX 200 Index (ASX: XJO) is on course to record another solid gain. At the time of writing, the benchmark index is up 0.7% to 6,838.9 points.

Four ASX shares that are climbing more than most today are listed below. Here’s why they are racing higher:

Afterpay Ltd (ASX: APT)

The Afterpay share price is up 3% to $129.08 despite there being no news out of the payments company. However, a strong night of trade on the tech-focused Nasdaq index appears to have given the local tech sector a lift today. At the time of writing, the S&P/ASX All Technology Index (ASX: XTX) is up a sizeable 2.1%.

IOUpay Ltd (ASX: IOU)

The IOUpay share price is up 4% to 63 cents. Investors have been buying the Malaysia-based buy now pay later (BNPL) provider’s shares after it announced an agreement to provide iPay88 merchants and end-user customers with BNPL payment services. According to the release, iPay88 is the dominant online payments brand in Malaysia. In 2020, its merchants processed over 360 million transactions across its payment gateway network with a total transaction value (TTV) of approximately A$10 billion.

Liontown Resources Limited (ASX: LTR)

The Liontown Resources share price has jumped 12.5% to 49.5 cents. The catalyst for this was drilling results from its 100%-owned Moora Project in Western Australia. According to the release, Liontown’s drilling has returned outstanding high-grade assay results. The results are considered to be highly significant and represent an important breakthrough in the exploration of the Moora Project.

Redbubble Ltd (ASX: RBL)

The Redbubble share price has jumped 10% to $5.90. This also appears to have been driven by improving sentiment in the tech sector. In addition to this, bargain hunters may be swooping in after a very sharp decline from its 52-week high. This left its shares trading at an attractive level according to Morgans. The broker has an add rating and $6.64 price target on Redbubble’s shares.

More reading

• Why the IOUpay (ASX:IOU) share price is charging 13% higher today
• Here’s why the Afterpay (ASX:APT) share price fell 11% in February
• Leading brokers name 3 ASX shares to buy today
• Here’s how much Afterpay (ASX:APT) rival Klarna is worth now
• Why Afterpay, Austal, Reece, & Service Stream shares are racing higher

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO. 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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The Firefly Resources Ltd (ASX: FFR) share price is down 6.9% at 13.5 cents in early trade today, chopping into its gains of more than 11% at close yesterday.

The Firefly share price movement follows the gold miner’s announcement yesterday that it had received conditional approval to spin off its manganese focused subsidiary, Firebird Metals Ltd.

At its current share price, Firefly has a market capitalisation of $43.5 million.

What was in Firefly’s announcement?

The company expects shares in Firebird to begin trading under the ticker FRB in the week beginning 15 March 2021.

The pro-rata distribution of Firebird shares to Firefly shareholders will occur at 5pm (Western Standard Time) on 5 March. Registered shareholders will receive 1 share in Firebird for every 12 shares in Firefly they own. Anyone who holds fewer than 2500 shares in Firebird will see those shares automatically sold, commission-free.

Words from the managing director

Firefly managing director Simon Lawson welcomed the move, saying:

Firebird takes the Oakover Manganese Project, a non-core Firefly project with an established historic resource that will represent a low market capitalisation on [initial public offering] IPO…

The successful demerger and IPO of Firebird creates a standalone ASX-listed company with an EV of just over $10 million, offering huge upside as it unlocks the value of this high-quality manganese asset.

Manganese commodity price and forecast

According to the Royal Society of Chemistry, manganese is too brittle to be used as a metal on its own. As such, it is mostly used as an alloy to reinforce steel. Manufacturers use manganese steel for railway tracks, safes, rifle barrels, and prison bars.

The website Trading Economics lists the current commodity price of manganese ore at USD 31.25. Over the past year, manganese reached a low of US$27.90 in December and a high of US$46.39 in May. The website is forecasting the price of the ore to slightly decrease over the course of the year.

Firefly share price snapshot

This time last year, the Firefly share price was trading at 3 cents a piece. At its current price of 13.5 cents, that’s a 366% increase.

Historically, the picture is a little different, however. In January 2017, shares in the company were swapping hands for $1.17. In fact, in January 2011, the share price was an incredible $10.24.

More reading

• Lake Resources (ASX:LKE) share price rockets 19% on positive update
• Here’s why the Mesoblast (ASX:MSB) share price is tumbling lower today
• Did you know Piedmont (ASX:PLL) and Mesoblast (ASX:MSB) are listed on the NASDAQ?
• ASM (ASX:ASM) share price jumps as scoping study supports $45m plant build
• Why the IOUpay (ASX:IOU) share price is charging 13% higher today

Motley Fool contributor Marc Sidarous 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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The Lake Resources N.L. (ASX: LKE) share price is rocketing higher today. This comes after the company announced that it has received positive battery test results. In early morning trade, the lithium-focused mineral exploration company’s shares are up 19.4% to 46 cents. At the time of writing, the share price has retreated slightly to 38 cents. 

Let’s take a closer look at the announcement and what that means for the Lake Resources share price. 

What’s driving the Lake Resources share price higher?

The Lake Resources share price is on the move today as investor appear upbeat about the company’s prospects.

In this morning’s release, Lake Resources advised that it has received favourable test results for its 99.97% purity lithium carbonate. This is used in high-performance lithium-ion batteries.

Novonix Ltd (ASX: NVX) is a battery materials and technology company. Recently, it carried out test-work to compare batteries samples from tier 1 producers against Lake Resources. Novonix is well-regarded across the industry in providing high-precision battery testing equipment to tier 1 battery makers. Their client list includes Panasonic, Samsung, Bosch, Honda, Dyson, and others.

Novonix received commercial samples of NMC622 batteries from tier 1 producers. Additionally, with samples of Lake’s 99.97% purity lithium carbonate battery cells. Interestingly, it noted that when conducting a real-world comparison, Lake Resources’ product ended up on top. The results indicated improved capacity retention and better electrochemical behaviour in coin cells compared against the tier 1 producer’s batteries.

Consequently, Novonix will begin to ramp up its testing program to produce cells and batteries at a larger scale. However, it is expected that this will take a number of months to complete the process. Lake Resources stated that it will update the market when the results become available.

Management commentary

Lake Resources managing director Steve Promnitz hailed the test outcome, saying:

The results from Novonix demonstrate the high quality of Lake’s high purity lithium in batteries and future results are anticipated to reinforce the initial results. This provides electric vehicle makers and battery makers confidence around Lake’s product quality, which is particularly important given the increasing demand for a high purity product.

Lake is advancing the Kachi DFS amid a growing focus on sustainability and the need for a responsibly sourced product suitable for the supply chains of leading EV makers. With investor and industry engagement intensifying, Lake is in an excellent position to progress our product and unlock increased value for shareholders.

About the Lake Resources share price

The Lake Resources share price has accelerated in the past year, gaining more than 880%. While renewed investor sentiment within the battery industry has helped support the share price, the company has been making tailwinds. Just last month, the company’s shares rose close to 40%. This was on the back of the announcement of its shallow drill testing at its flagship Kachi Lithium Brine Project in Argentina.

Based on the current share price, Lake Resources commands a market capitalisation of close to $400 million.

More reading

• Why is the Novonix (ASX:NVX) share price in a trading halt today?
• Novonix (ASX:NVX) share price is powering up 18% today. Here’s why
• Why the Novonix (ASX:NVX) share price jumped 11% this morning
• Why Novonix, Recce, Singular Health, & Starpharma shares are storming higher

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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The Mesoblast limited (ASX: MSB) share price has returned from its trading halt and tumbled lower.

At the time of writing, the biotech company’s shares are down 4.5% to $2.35.

This latest decline means the Mesoblast share price is now down 59% from its 52-week high of $5.70.

Why is the Mesoblast share price tumbling lower today?

Investors have been selling Mesoblast shares after it announced a US$110 million private placement led by a strategic US investor group. This includes one of the largest private operators of ambulatory surgical centres, SurgCenter Development.

According to the release, the company raised the funds via the issue of 60 million shares at $2.30 per share. This represents a 6.5% discount to the Mesoblast share price prior to its trading halt.

Following the completion of the private placement, Mesoblast will have pro-forma cash-on-hand of US$187.5 million.

In addition to the shares, the investors have also received warrants to acquire a further 15 million shares at a price of A$2.88 per share. This could raise a further A$43.2 million (US$34 million) on or before 15 March 2028.

The company also has a right to call on the funds at any time during the term. This is subject to the Mesoblast share price trading at $4.32 or higher for at least 45 consecutive days.

Management commentary

Mesoblast’s Chief Executive, Dr Silviu Itescu, was pleased with the investment.

He said “We are pleased to receive a strategic investment from the principals of SurgCenter Development, one of the largest private operators of ambulatory surgical centers in the US specializing in spine, orthopaedic and total joint procedures.”

“We expect the deep healthcare knowledge and expertise of this investor group will be of great benefit to the company. The network and infrastructure of surgeons and ambulatory centers operated by SurgCenter may provide unique synergies to facilitate development and market access for rexlemestrocel, if approved, in patients with chronic lower back pain.”

What will the proceeds be used for?

The release explains that private placement will provide financial strength for operational and regulatory initiatives across multiple products. This comes at a time when the company undertakes important late-stage meetings with the United States Food & Drug Administration (FDA) in the second and third quarters of this calendar year.

In addition, funds will be used to invest in the commercial supply of remestemcel-L ahead of potential approval for graft versus host disease in children and in optimised manufacturing for larger market opportunities.

Management also intends to use some of the proceeds for advancing manufacturing and the development of the rexlemestrocel-L platform to meet commercial objectives. This is for chronic heart failure and chronic low back pain due to degenerative disc disease.

More reading

• Did you know Piedmont (ASX:PLL) and Mesoblast (ASX:MSB) are listed on the NASDAQ?
• 5 things to watch on the ASX 200 on Tuesday
• These are the 10 most shorted shares on the ASX
• Why the Mesoblast (ASX:MSB) share price is on watch this week
• 5 things to watch on the ASX 200 on Monday

Motley Fool contributor James Mickleboro 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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