Cardiex Launches $4.1M Entitlement Offer to Fuel Device Manufacturing and Growth
Cardiex Limited has announced a fully underwritten 1-for-4 entitlement offer at $0.04 per share, aiming to raise approximately $4.1 million to advance manufacturing and scale its supply chain. The offer closes on 20 June 2025, following a recent $2.4 million placement.
- 1-for-4 non-renounceable entitlement offer at $0.04 per share
- Fully underwritten by Blackpeak Capital with sub-underwriting by director-associated entities
- Funds to support device manufacturing, supply chain scale-up, marketing, R&D, and debt repayment
- Recent $2.4 million placement complements the entitlement offer
- Potential voting power increase for substantial shareholder C2 Ventures and associates
Capital Raising Overview
Cardiex Limited (ASX, CDX), a medical device company, has launched a 1-for-4 non-renounceable pro rata entitlement offer priced at $0.04 per new share. The offer aims to raise up to approximately $4.1 million before costs and is fully underwritten by Blackpeak Capital Pty Ltd. This follows a recent placement that secured $2.4 million, positioning the company to strengthen its financial footing as it advances its manufacturing and supply chain capabilities.
Use of Proceeds and Strategic Intent
The capital raised will be directed towards several key areas, device manufacturing and inventory build-up, marketing and sales activities to support supply chain scale-up and customer care, further research and development, repayment of existing debt, and general corporate working capital. Notably, $1 million is earmarked for manufacturing, $1.5 million for marketing and sales, and $500,000 for debt repayment, reflecting a balanced approach to growth and financial stability.
Underwriting and Shareholder Participation
The entitlement offer is fully underwritten by Blackpeak Capital, with sub-underwriting commitments from C2 Ventures Pty Limited and Carnethy Evergreen Pty Ltd, entities associated with directors Niall Cairns and Craig Cooper. This arrangement ensures the company will raise the targeted funds regardless of shareholder uptake. Directors and their related parties have committed to fully participate in the offer, signaling confidence in the company’s prospects.
Impact on Shareholding and Control
The offer is non-renounceable, meaning shareholders cannot trade their entitlements. Eligible shareholders may also apply for additional shares beyond their entitlement through a Top-Up Offer, subject to availability and allocation discretion. The substantial shareholder group, led by C2 Ventures and its associates, currently holds approximately 35.9% of voting power and may see this increase depending on the uptake of entitlements and shortfall allocations. The company has implemented measures, including appointing a nominee and allocation policies, to mitigate potential control issues arising from the underwriting and sub-underwriting commitments.
Offer Timeline and Investor Considerations
The entitlement offer opened on 6 June 2025 and is scheduled to close at 5, 00pm (AEST) on 20 June 2025, subject to extension. Shareholders are encouraged to carefully consider the offer documents and consult professional advisers before participating. The company highlights key risks associated with the investment, including market conditions and operational execution, detailed in its investor presentation. Ineligible shareholders will have their entitlements managed by a nominee, who will sell the shares on their behalf, with proceeds distributed after costs.
Bottom Line?
As Cardiex seeks to bolster its manufacturing and market presence, the success of this fully underwritten entitlement offer will be pivotal in shaping its next growth phase.
Questions in the middle?
- Will shareholder uptake meet expectations or will underwriting dominate the capital raise?
- How will the increased stake of director-associated entities affect corporate governance and control?
- What are the key operational milestones Cardiex aims to achieve with the new capital?
