Nova Eye Medical has completed a $6.6 million placement to fund growth initiatives, supported by strong global sales growth and a major shareholder commitment. The capital raise aims to bolster sales teams and product development as the company targets profitability in its glaucoma division.
- $6.6 million raised via two-tranche placement
- Major shareholder commits A$1.1 million; directors contribute A$125,000
- Global sales up 39% year-over-year, with 48% growth in the US
- Glaucoma division expected to be profitable in H2 FY25
- Funds allocated to US and German sales expansion, product development, and working capital
Capital Raise and Investor Confidence
Nova Eye Medical Limited (ASX: EYE) has successfully completed a $6.6 million placement, signaling robust investor confidence in the company’s strategic trajectory. The placement was conducted in two tranches, with the first tranche raising approximately A$4.1 million under existing placement capacity and the second tranche, subject to shareholder approval, expected to raise an additional A$2.5 million. Notably, Australian Ethical Investments, a major shareholder, has committed A$1.1 million to the second tranche, while company directors have pledged A$125,000, underscoring internal belief in the company’s prospects.
The shares were issued at A$0.12 each, representing a significant discount of over 27% to recent trading prices, a move designed to attract strong institutional and sophisticated investor participation. This capital injection is poised to underpin Nova Eye Medical’s next phase of growth, particularly in expanding its footprint in key markets.
Sales Momentum and Market Expansion
Nova Eye Medical’s recent financial disclosures reveal a compelling growth story. Global sales surged 39% year-over-year, with the US market leading the charge at a 48% increase, driven primarily by demand for its flagship product, the iTrack™ Advance. This minimally invasive glaucoma surgical device is gaining traction among ophthalmic surgeons, supported by an expanding direct sales force in the US and Germany.
The company’s glaucoma division is on track to achieve profitability in the second half of fiscal 2025, a milestone that could significantly enhance investor sentiment and operational sustainability. Revenue guidance for H2 FY25, excluding China, is set between US$9 million and US$10 million, representing a 15-30% growth over the first half of the year.
Strategic Use of Funds
The proceeds from the placement will be strategically deployed to expand sales teams in the United States and Germany, two critical markets for Nova Eye Medical’s growth ambitions. Additionally, funds will support ongoing product development and improve production efficiencies, ensuring the company remains competitive and innovative in the ophthalmic device sector.
Working capital will also be bolstered to support operational resilience amid scaling activities. This balanced allocation reflects a disciplined approach to growth, aiming to capitalize on current market momentum while preparing for longer-term sustainability.
Looking Ahead
With the placement timetable set, including an Extraordinary General Meeting in early March to approve the second tranche, Nova Eye Medical is poised to accelerate its growth trajectory. The company’s leadership, including Managing Director Tom Spurling and Chairman Victor Previn, have expressed optimism about the market’s reception and the company’s strategic direction.
As the iTrack™ Advance continues to gain market share and the glaucoma division approaches profitability, investors will be watching closely to see if Nova Eye Medical can sustain this momentum and translate it into long-term value creation.
Bottom Line?
Nova Eye Medical’s capital raise and strong sales growth position it for a pivotal year ahead, but shareholder approval and execution will be key to unlocking its potential.
Questions in the middle?
- Will shareholder approval for the second tranche proceed smoothly at the upcoming EGM?
- How will the expanded US and German sales teams impact market penetration and revenue growth?
- Can the glaucoma division sustain its path to profitability beyond H2 FY25?