Mesoblast Ltd (ASX:MSB) has revealed a fully underwritten 1 for 12 pro-rata accelerated non-renounceable entitlement offer at $1.40 to raise $50.7 million.
The price is a 13% discount to Mesoblast’s last close price of $1.61 on the 24th August 2017.
Proceeds will be used to fund the costs of on-going Tier 1 clinical programs.
This includes support commercial manufacturing requirements for Tier 1 product candidates, through development and implementation of its proprietary manufacturing processes and expansion of manufacturing capabilities and resources.
The offer and existing cash reserves will ensure Mesoblast is fully funded to complete/advance it’s near term objectives and provide balance sheet flexibility.
The offer
The institutional component of the offer will be run from 25th to the 28th August.
The retail component will be open until the 12th September.
New shares are expected to begin trade on the 19th September.