AVITA Medical Announces Institutional Placement of A$120.0 Million

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November 19, 2019

AVITA Medical is a regenerative medicine company with a technology platform positioned to address unmet medical needs in therapeutic skin restoration.

Today they announced an institutional placement of A$120.0 million (Institutional Placement) to fund pipeline development of new indications, including optimizing support for clinical trials and development projects, as well as the Company’s continued U.S. commercial growth strategy.

The Institutional Placement was managed by Bell Potter as sole lead manager. Cowen served as financial advisor to the Company in connection with the Institutional Placement. Lake Street Capital Markets also acted as a financial advisor to Avita Medical. The Company has received commitments for A$120.0 million at an issue price of A$0.59 per fully paid ordinary share, representing a 7.2 percent discount to the 30-day VWAP, and a 14.5 percent discount to the last closing price on 8 November 2019. The new AVITA shares to be issued under the Institutional Placement will rank equally with existing AVITA shares on issue. The Institutional Placement will occur in a single tranche, and issue 203,389,831 shares to international and Australian sophisticated investors under its 15 percent placement capacity (under ASX Listing Rule 7.1).

“We are grateful for the confidence and conviction of the investors who have joined us in our mission to transform burn care with our revolutionary RECELL® System and to promptly execute on our pipeline of add-on indications,” said Dr. Mike Perry, Chief Executive Officer. “This financing reflects our shared excitement for, and strong confidence in, AVITA Medical’s myriad near-term growth opportunities. These include trauma/soft tissue reconstruction, vitiligo, our next generation RECELL device to facilitate use of the RECELL System in the outpatient setting, and pediatric scald wounds, as well as efforts to enable research programs to support the advancement and extension of our existing intellectual property. Through diligent and focused execution on our highly de-risked pipeline of new indications, we have the opportunity to access the full potential of our innovative regenerative medicine platform to advance patient care that addresses unmet medical needs, while aggressively growing our top line revenues and ultimately building a robust self-sustaining business.”

The funds from the Institutional Placement will enable AVITA Medical to fast-track progression of clinical development programs and to accelerate its broader commercialization strategy. Key initiatives include:

  • Initiating U.S. pivotal trials to establish the safety and efficacy of the RECELL System in soft tissue reconstruction and traumatic wounds, as well as early intervention in the treatment of pediatric scald wounds
  • Further development and submission to the FDA of a next generation RECELL System to facilitate access to the large outpatient market
  • Pilot studies with the RECELL System for the treatment of vitiligo, and subsequent rapid advancement into a pivotal clinical trial to secureadva this indication in the U.S.
  • Conducting research and preclinical studies to augment our existing IP portfolio
  • Securing marketing approval and reimbursement for the RECELL System in Japan in collaboration with our partner, COSMOTEC, an M3 Group company targeting patients with burn injuries, soft tissue wounds, chronic wounds (DFUs/VLUs), and vitiligo
  • Early phase research into cell and cell-based gene therapy for skin regeneration that either corrects inborn genetic defects of the skin or contributes materially to rejuvenation

In addition to the successful Institutional Placement, the Company’s CEO Dr Michael Perry has sold 23,470,000 shares to enable him to meet his tax obligations relating to previously issued Restricted Stock Units (RSU’s).

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