Ellex Medical Lasers (ASX: ELX) has received a vote of confidence in the company's medical technologies for the diagnosis and treatment of eye disease known as ophthalmic products, with strong support in a capital raising.
It raised A$3.3 million through a placement to institutional and sophisticated investors, priced at A$0.26 per share - a 13.3% discount to the closing price before entering a trading halt earlier in the week.
The company develops, manufactures and markets lasers and diagnostic equipment for the treatment of eye disease to a growing global market.
The funds will be applied to the company's proprietary 2RT laser in the treatment of early Age-Related Macular Degeneration (AMD), in particular to accelerate recruitment for the 300 patient early AMD clinical trials via new sites in the U.S., Europe and Australia.
Proceeds will also be used to reduce debt.
Highlighting the interest in ophthalmic lasers, Abbot (NYSE: ABT) acquired Optimedica Corporation for US$250 million upfront and further US$150 million in earn out.
Ellex's revenue for FY13 was $42.8 million, which is dispersed across the globe and includes around a quarter from both the Americas and Japan, and about a fifth from Australia.
The company has been a strong share price performer of late, with its stock up around 50% in just over two-months.
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