CardieX Ltd (ASX:CDX) is out to raise $1 million under a new share purchase plan (SPP).
The consumer healthtech company will use the capital to accelerate new product initiatives tied to its CONNEQT subsidiary and to support its US corporate initiatives.
The CONNEQT app, when paired with the CONNEQT Pulse device, is designed to be the world’s first home-use dual blood pressure management system, powered by fellow CardieX subsidiary ATCOR’s SphygmoCor ® blood pressure monitoring technology.
CONNEQT recently filed a 510(k) premarket clearance form with the FDA, which essentially seeks to demonstrate its device is as safe and effective as one that is legally marketed.
The proceeds will also create a general working capital bank to fund the company’s existing operations and future regulatory requirements.
The fine print
Under the cap raise, eligible investors can subscribe for up to $30,000 worth of CDX shares at 30 cents apiece.
The SPP comes soon after CardieX cut the ribbon on a $4.33 million placement, which garnered strong demand from directors, domestic institutions, family offices and sophisticated investors.
Following the placement’s support, the ASX-lister reserves the right to close the SPP early, scale back applications or accept an amount above or below the $1 million raise target.
Finger on the Pulse
Speaking to the cap raise last Friday, CardieX group CEO Craig Cooper said: “In these tough economic times, I would like to thank all new and existing shareholders who have joined us in this funding round.
“As we move towards our new product launches, FDA clearance on the Pulse, the lodgement of our FDA submission on our arterial health wearable and other corporate activities, it's important to have momentum with our go-to-market strategy and operational requirements that will ensure our success.
“We have also opened up this round to all shareholders with the SPP, ensuring that all those who have supported us in the past have the opportunity to participate in the value that we will be delivering for all shareholders going forward.”
What now?
CardieX’s share purchase plan is scheduled to close on Friday, September 23, while any scaleback will take place from the following Tuesday.
Shares should be issued by Wednesday, September 28, and hit the boards the next day.