ImpediMed Limited (ASX: IPD) has received binding commitments for an oversubscribed placement to institutional and sophisticated investors for 45.3 million shares at $0.195 per share, raising $8.8 million.
Existing shareholders as of yesterday, 27th March will also be entitled to participate on the same terms, to raise another $3 million.
Proceeds will primarily be used for sales and marketing activities in the US for the company’s L-Dex® system for the early detection lymphoedema, a common consequence of cancer.
ImpediMed’s bioimpedance spectroscopy (BIS) system accurately and simply measures tissue composition; L-Dex is its first product incorporating this technology.
There is a large addressable market for lymphoedema detection, with over 900,000 relevant cancer cases per year in the US alone, worth more than $350 million.
L-Dex commercialisation has started and is poised for acceleration, with FDA clearance completed and 7 of the top 10 US cancer institutions on board.
The company also intends to use the proceeds towards sponsoring post-clearance clinical trials and new product development.
ImpediMed is capitalised at around $40 million.
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