AVITA Medical has successfully raised approximately A$23 million through a private placement, positioning the company to advance its therapeutic acute wound care portfolio and target free cash flow by 2026.
- Raised A$23 million via private placement of 17.2 million new CHESS Depositary Interests
- Offer price set at A$1.32 per CDI, representing an 11% discount to last close
- Funds earmarked for working capital and strategic growth initiatives
- Placement attracted both new and existing Australian institutional investors
- Free cash flow expected to commence in 2026, supported by this capital raise
Capital Raise Overview
AVITA Medical, a leader in therapeutic acute wound care, has completed a significant equity raise on the Australian Securities Exchange (ASX), securing approximately A$23 million (US$15 million) through a private placement. The company issued around 17.2 million new CHESS Depositary Interests (CDIs) at A$1.32 each, a price reflecting an 11% discount to the previous closing price. This move underscores investor confidence in AVITA’s growth strategy and its innovative wound care technologies.
Strategic Implications
The proceeds from this placement are earmarked primarily for working capital needs and to provide AVITA with additional strategic flexibility. This financial boost is expected to sustain operations and support the expansion of its therapeutic acute wound portfolio until the company achieves free cash flow, projected for 2026. The capital injection will likely enable AVITA to accelerate development and commercialization efforts, particularly around its flagship RECELL System and complementary products like PermeaDerm and Cohealyx.
Investor Reception and Market Position
The placement attracted participation from both new and existing Australian institutional and professional investors, signaling robust market interest and endorsement of AVITA’s prospects. MST Financial Services Pty Limited acted as the sole lead manager, facilitating the transaction efficiently. The new CDIs are expected to settle and begin trading on the ASX by August 20, 2025, ranking equally with existing shares, thus broadening the company’s shareholder base.
Looking Ahead
AVITA Medical’s CEO, Jim Corbett, highlighted the strong support for the placement as a reflection of growing confidence in the company’s transformative wound care solutions. As AVITA navigates the next phase of growth, the fresh capital will be critical in underpinning operational stability and innovation. Investors will be watching closely to see how effectively the company translates this financial backing into tangible clinical and commercial milestones.
Bottom Line?
AVITA Medical’s latest capital raise sets the stage for a pivotal growth phase as it aims to turn innovation into sustainable cash flow.
Questions in the middle?
- How will AVITA allocate the raised funds across its product portfolio and R&D?
- What milestones should investors expect on the path to free cash flow in 2026?
- How might the new shareholder mix influence corporate strategy and governance?