Orthocell Secures $7.37M IPO Financing to Advance Natural Collagen-Based Tissue Regeneration Medical Devices

VCBeat (WeChat Official Account: vcbeat) learned from foreign media that on June 1, local time, Australian regenerative medicine company Orthocell completed a $7.37 million financing round. The funds from this round will be used to support the company’s development of natural collagen-based tissue regeneration technologies and to expand its presence in the medical device market.

It is reported that this round of financing was completed by both new and existing investors. Orthocell will issue approximately 26.5 million shares at an issue price of AUD 0.40 per share. In accordance with ASX Listing Rule 7.1A (12517281), the shares issued under this rule will be offered in a single tranche, utilizing Orthocell’s placement capacity. The remaining shares will be issued within the company’s existing placement capacity under ASX Listing Rule 7.1 (13982719). All issued placement shares will rank pari passu with the existing ordinary shares. The offer price of AUD 0.40 complies with the requirements of ASX Listing Rule 7.1A. Settlement of the public offering is expected to take place on Wednesday, June 5, 2019.

Orthocell, established in 2008 and headquartered in Melville, Australia, is a medical company dedicated to improving the lives of patients with tissue injuries by providing innovative solutions for the regeneration of tendons, cartilage, and soft tissues.

CelGro® is one of Orthocell’s flagship products, a collagen-based medical device designed to promote tissue repair and regeneration. CelGro™ has been demonstrated to facilitate tissue repair in a variety of applications, including alveolar bone regeneration, soft tissue regeneration, augmentation of rotator cuff tendon repair in the shoulder, assistance in the reconnection of severed or injured peripheral nerves, and restoration of articular cartilage in the hip joint. The product is marketed in the European Union.

CelGro® is manufactured at Orthocell’s facility in Australia using its proprietary SMRT™ technology, offering the following advantages: (1) High biocompatibility. Medical devices produced using SMRT™ technology feature high purity and strong biocompatibility, ensuring excellent compatibility with the human body and preventing rejection reactions during treatment. (2) Superior mechanical properties. CelGro® exhibits high extensibility, supporting various surgical approaches and scientifically facilitating patient treatment. (3) Excellent regenerative capacity. CelGro® leverages natural collagen structures to repair human tissues, minimizing potential harm and providing optimal compatibility with the human body. (4) Versatile application methods. The natural collagen within the device can be used alone or in combination with growth factors to accelerate tissue recovery.

Orthocell Managing Director Paul Anderson stated, “We are grateful for the support from new investors in this latest round. We will leverage these funds to continue developing our business, expand the market share of CelGro®, and deliver superior services to both new and existing customers. The successful completion of this transaction underscores recognition of Orthocell’s business strategy, the progress in the commercialization of CelGro®, and the company’s overall development. We look forward to collaborating with our investors to help patients with soft tissue injuries recover their health more rapidly.”

(Compiled by Liu Yujing)