Nova Eye Medical Limited (ASX:EYE) Announces Capital Raise to Drive Growth
Capital Raise Overview
Nova Eye Medical Limited is undertaking a capital raise of approximately A$6.6 million to enhance its financial position and support ongoing growth. This decision follows a temporary supply chain disruption in Q1 FY25, which has since been resolved, leading to a sales performance in Q2 FY25 that exceeded both Q1 and the previous corresponding period.
The funds raised will mitigate temporary cash flow shortfalls caused by prior disruptions, ensuring operational stability and aiding market expansion. The capital will also be used to further de-risk the supply chain in response to increasing global demand for the company’s iTrack Advance device.
Financial Highlights
Global sales for Nova Eye Medical have risen 39% in constant currency, including a 48% increase in the USA. The glaucoma segment is nearing profitability, with an expected revenue between US$9 million and US$10 million in the second half of FY25, excluding sales to China. The company projects strong cash flow improvement, targeting cash flow breakeven following a noticeable reduction in cash outflow from operations.
Details of the Offer
The placement will occur in two tranches: the first targeting approximately A$4.1 million, with shares issued under the company’s available placement capacity, and the second aimed at raising A$2.5 million, subject to shareholder approval. The offer price of A$0.12 per security reflects a discount to recent trading prices.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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