Cardiex Limited has raised $2.4 million through an institutional placement and launched a fully underwritten entitlement offer to raise up to $4.1 million, aiming to scale its CONNEQT Pulse device.
- Institutional placement raises $2.4 million at $0.04 per share
- Fully underwritten 1-for-4 entitlement offer targets $4.1 million
- C2 Ventures commits $1.9 million across placement and entitlement offer
- Funds earmarked for manufacturing, marketing, and commercial scale-up
- Joint lead managers and underwriter appointed to support the capital raise
Capital Raise Overview
Cardiex Limited (ASX: CDX), a medical technology company focused on vascular health, has announced a significant capital raise designed to fuel the commercial expansion of its flagship product, the CONNEQT Pulse. The company secured firm commitments to raise $2.4 million through a share placement to institutional and sophisticated investors, priced at 4 cents per share.
Following this, Cardiex has launched a fully underwritten, non-renounceable entitlement offer to existing eligible shareholders on a 1-for-4 basis, aiming to raise up to approximately $4.1 million on the same terms as the placement. This combined effort could inject up to $6.5 million into the business, providing a substantial boost to its growth ambitions.
Strategic Backing from Directors
Notably, C2 Ventures Pty Ltd, a company jointly owned by Cardiex directors Niall Cairns and Craig Cooper, has committed to participate heavily in both the placement and entitlement offer. Subject to shareholder approval, C2 Ventures will subscribe for approximately $736,000 worth of shares in the placement and fully take up its $1.2 million entitlement in the entitlement offer. Additionally, it has agreed to sub-underwrite part of the entitlement offer, signaling strong insider confidence in the company’s prospects.
Use of Funds and Growth Prospects
The funds raised will primarily support the manufacturing scale-up, marketing, and sales activities for the CONNEQT Pulse device, which leverages Cardiex’s proprietary vascular biomarker technology. CEO Craig Cooper emphasized that this capital raise is a pivotal step toward positioning CONNEQT Health as a category leader in arterial health solutions, aiming to make arterial health monitoring accessible to millions globally.
With joint lead managers Blackpeak Capital, Stralis Capital Partners, and Taylor Collison appointed, and Blackpeak Capital underwriting the entitlement offer, Cardiex is well-supported to execute this capital raising efficiently. The company also plans to host an investor webinar soon to provide further insights into its strategic roadmap and commercial rollout plans.
Looking Ahead
The timetable for the offer is set with key dates spanning from early June through to July 2025, including the expected shareholder meeting to approve C2 Ventures’ placement allocation. While the capital raise strengthens Cardiex’s financial position, the ultimate success will depend on shareholder uptake and the company’s ability to scale manufacturing and market penetration effectively.
Bottom Line?
Cardiex’s $6.5 million capital raise marks a critical juncture as it seeks to transform vascular health monitoring from concept to commercial reality.
Questions in the middle?
- Will shareholder approval for C2 Ventures’ placement subscription be secured smoothly?
- How quickly can Cardiex scale manufacturing and distribution of the CONNEQT Pulse?
- What market response will the expanded commercial rollout generate in the near term?