Shareholder Approval Pending as Cardiex Raises $6.5M to Fuel Growth
Cardiex Limited has successfully raised $4.1 million through a fully underwritten entitlement offer, bringing total funds raised to $6.5 million including a recent institutional placement. The offer saw strong participation from directors and key shareholders, with new shares set to be issued imminently.
- Entitlement offer raised approximately $4.1 million
- Total capital raised reaches $6.5 million including prior placement
- Directors and associated entities subscribed for significant share portion
- Offer fully underwritten by Blackpeak Capital with sub-underwriting support
- New shares to be issued on 27 June 2025, some pending shareholder approval
Capital Raise Overview
Cardiex Limited (ASX, CDX), a medical technology company focused on vascular health, has announced the successful completion of its fully underwritten, non-renounceable pro-rata entitlement offer. The offer raised approximately $4.1 million, complementing a recent institutional placement to bring total funds raised to $6.5 million before costs. This capital injection is a significant step for Cardiex as it continues to develop its suite of medical and digital health products based on its proprietary SphygmoCor® vascular biomarker technology.
Shareholder and Director Support
The entitlement offer was met with solid support from eligible shareholders, who applied for just over 49 million new shares, alongside an additional 1.7 million shares under a Top-Up Offer. This represented a take-up of roughly 50.3% of the entitlement offer. Notably, C2 Ventures, a company jointly owned by Cardiex directors Niall Cairns and Craig Cooper, along with other directors and their associated entities, subscribed for over 33.7 million new shares valued at approximately $1.35 million. This level of insider participation signals confidence in the company’s strategic direction and prospects.
Underwriting and Share Issuance
The entitlement offer was fully underwritten by Blackpeak Capital Pty Ltd, which arranged sub-underwriting agreements with several parties including C2 Ventures and its associates. These sub-underwriters took up their full entitlements, amounting to over 50.4 million new shares valued at around $2 million. The new shares, including those issued to cover the underwritten shortfall, are scheduled for issuance on 27 June 2025 and will rank equally with existing ordinary shares. However, 18.4 million shares related to C2 Ventures’ participation in tranche 2 of the placement remain subject to shareholder approval under ASX Listing Rule 10.11 and will be issued subsequently.
Strategic Implications
This capital raising effort strengthens Cardiex’s balance sheet, providing additional resources to advance its medical technology developments and commercial initiatives. The involvement of directors and key shareholders in the entitlement offer underscores their commitment to the company’s growth trajectory. Meanwhile, the full underwriting arrangement mitigates risk around the capital raise’s success, ensuring the company secures the intended funds despite only half the entitlement offer being taken up by shareholders.
Looking Ahead
With the new shares set to be issued imminently, Cardiex is positioned to accelerate its innovation pipeline and market expansion. Investors will be watching closely for the outcome of the shareholder approval process for the tranche 2 placement shares, as well as how the company deploys this fresh capital to drive shareholder value.
Bottom Line?
Cardiex’s successful capital raise bolsters its growth ambitions, but upcoming shareholder approvals will be key to finalising its capital structure.
Questions in the middle?
- Will shareholder approval for the tranche 2 placement shares be secured without delay?
- How will Cardiex allocate the new capital to maximise growth and innovation?
- What impact will the increased share issuance have on existing shareholders’ dilution?
