Vitrafy Reports $35M Capital Raise and 31% Improvement in Bovine Semen Motility

Successful IPO Sets Stage for Growth

Vitrafy Life Sciences Limited (ASX: VFY), an innovator in cryopreservation technology, marked a significant milestone in Q2 FY2025 with its successful initial public offering (IPO) on the Australian Securities Exchange in late November 2024. The company raised $35 million, exceeding primary capital targets, providing a robust financial foundation to accelerate its development and commercialisation plans.

The capital injection is earmarked for expanding business development efforts, advancing product innovation, and establishing a sustainable operational platform, particularly targeting growth in the lucrative North American market.

Validation Success in Animal Health Applications

Vitrafy’s proprietary cryopreservation technology demonstrated compelling results in animal health during the quarter. In collaboration with Huon Aquaculture, the company completed a spring fertilisation process using cryopreserved salmon milt, achieving fertilisation rates around 65%, closely rivaling fresh fertilisation at 68%. This performance notably surpasses existing cryopreservation technologies, which typically yield 0-40% fertilisation rates, underscoring Vitrafy’s technological edge.

In bovine semen preservation, Vitrafy’s technology delivered a 64% post-thaw motility rate, a 31% improvement over conventional industry standards. These promising outcomes have paved the way for an expanded collaboration with Select Sires, Inc., including a forthcoming paid cryopreservation optimisation program at their Ohio headquarters, potentially leading to a commercial agreement.

Advancing Human Health and Cell & Gene Therapy Prospects

On the human health front, Vitrafy initiated a blood platelets project with the US Army Institute of Surgical Research, with testing scheduled for completion in Q3 FY2025 and results anticipated in Q4. The company is also actively engaging with multiple groups in the burgeoning Cell & Gene Therapy sector, exploring applications where its cryopreservation technology can enhance scalability, productivity, and quality retention.

Strategic North American Expansion and Product Development

Recognising the critical importance of the US market, Vitrafy has begun building a formal presence in North America. Recruitment of business development, regulatory, and commercial sales talent is underway, with key appointments expected imminently. The appointment of a US-based contractor with cell and gene therapy expertise in December 2024 is already driving lead generation efforts.

Simultaneously, Vitrafy is progressing two core product development initiatives: the Vitrafy Cryopreservation Unit 2.0 and the LifeChain™ software platform upgrade. Partnering with Planet Innovation, the company is refining device design and preparing for outsourced manufacturing in the US. The LifeChain™ upgrade aims to enhance scalability, data handling, and functionality, with completion targeted in the first half of FY2026.

Robust Financial Position Supports Ambitious Plans

At quarter-end, Vitrafy reported a strong liquidity position with approximately $14.4 million in cash and an additional $20 million in term deposits, totaling $34.4 million. This financial strength provides a runway exceeding two years to execute on growth initiatives. Operating cash outflows of $1.34 million were offset by commercial receipts and R&D tax incentives, reflecting ongoing investment in scaling operations and commercial activities.

The company has also converted all outstanding convertible notes into ordinary equity, simplifying its capital structure post-IPO.

Looking Ahead

With funding secured and a clear strategic roadmap, Vitrafy is poised to capitalise on its innovative cryopreservation technology across multiple sectors. The company’s upcoming half-year results, due February 6, 2025, will provide further insights into its commercial traction and operational progress. Investors will be watching closely as Vitrafy advances its North American expansion and moves closer to commercial agreements in both animal and human health markets.