Nova Eye Medical Limited (ASX:EYE) Completes $6.6 Million Placement
Capital Raising Details
Nova Eye Medical Limited has successfully secured $6.6 million through a two-tranche placement to sophisticated and professional investors. The placement features strong support from existing stakeholders, including a major shareholder committing A$1.1 million and directors contributing A$125,000, pending shareholder approval. The offer price of A$0.12 per share represents a discount to recent trading prices.
Use of Funds
The newly raised funds will provide working capital, facilitate the expansion of sales teams in the US and Germany, and support product development initiatives. This strategic capital allocation aims to enhance operational resilience and meet increasing global demand for its iTrack™ Advance product.
Sales Momentum and Financial Performance
Nova Eye Medical reported a notable 39% year-on-year growth in global sales, with US sales increasing by 48%. The company anticipates its glaucoma division will become profitable in the second half of FY25, with revenue guidance of US$9-10 million for H2 FY25, reflecting a 15-30% growth over the first half. Cash outflow from operations decreased to A$1.3 million in Q2 FY25, signalling improved financial management.
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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