Volpara Health to raise A$18 mln to fund US, Asian expansion
By Rebecca Howard
April 30 (BusinessDesk) - ASX-listed Volpara Health Technologies is raising A$18 million through a placement to
institutional investors and a share purchase plan to speed up growth in the US and fund the rollout of direct sales into
Asia.
Wellington-based Volpara, which focuses on early detection of breast cancer using artificial intelligence, is raising
A$15 million selling shares in a placement at 60 Australian cents apiece to institutional investors, a 13 percent
discount to the last trading price before the shares were halted. It plans to raise another A$3 million from existing
shareholders, who will be able to buy up to A$15,000 of shares at the same price.
The health-tech company's cash on hand will rise to A$21.8 million from A$4.6 million once the capital raising is
completed, and comes after Volpara's operational cash outflow narrowed to NZ$7.7 million in the year ended March 31 from
NZ$8.2 million a year earlier.
Volpara's earmarked some NZ$9 million to expand its US direct sales, marketing and customers teams to accelerate sales
growth with a view to delivering 9 percent market share by the end of the 2019 financial year. An additional NZ$4
million will develop new features in an effort to boost the firm's fee per woman, while NZ$2 million will begin the
rollout of direct sales into Asia, a rapidly growing market. That will leave the company with NZ$3 million of working
capital.
The placement is expected to settle on May 4 while the share purchase plan will run from May 7 to May 25. The allotment
will take place May 31.
Morgans Corporate and Bell Potter Securities have been appointed the joint lead managers.
Volpara said it's achieved regulatory clearances for Japan, Taiwan, Australia and South Korea. Part of the capital raise
will be used to target private hospital chains, find the right distribution partners and ensure Volpara is in
government-run trials as necessary, it said.
Separately the company said its cash position was NZ$4.8 million in the final quarter of the year to March and its
receipts from customers reached NZ$3.07 million in the 12-month period, the first time they have surpassed NZ$3 million.
It holds no debt.
"This has been our best sales quarter to date. We aimed high, setting ambitious milestones for the year, which we've met
both in terms of ARR (annualised recurring revenue) and US market penetration, now at NZ$3.6 million and 3.2 percent
respectively," said Volpara chief executive Ralph Highnam.
(BusinessDesk)