ResApp Health Limited is raising $12.5 million from institutional and other investors, and has issued 62.5 million new ordinary shares at $0.20 per share.
The company, which has developed smartphone apps for the diagnosis and management of respiratory disease, will use the funds to expedite an FDA approval for the adult diagnostic test, expand its US market access beyond telehealth into in-clinic use, and expand into Europe and Asia. Additionally, some of the proceeds will go towards development of tools for managing chronic respiratory diseases such as asthma and chronic obstructive pulmonary disease (COPD).
"Servicing the telehealth industry was our original goal and this remains an enormous opportunity, but we have since received great interest from practitioners in emergency rooms, clinics and outpatient settings where the great majority of patients are treated. We have also seen telehealth growing rapidly in Europe and Asia (including Australia) and we plan to respond by filing for regulatory approval in these countries and developing partnerships to enter their markets," Dr Tony Keating, CEO and Managing Director of ResApp, said in a statement. "The additional funds raised this week will allow us to address all of these opportunities effectively and to vastly increase ResApp's commercial potential. The inclusion of new, high quality institutional shareholders further demonstrates ResApp's global appeal and ensures that we have the financial backing to pursue all of the exciting prospects available to us."
Jett Capital Advisors, Empire Capital Partners and CPS Capital Group acted as joint lead managers to the placement. The trading halt that has been in place since Monday, 18 April 2016 will be lifted from the commencement of trading today.