EMVision Medical Devices launches a $2 million Share Purchase Plan offering shares at a 16.4% discount, bundled with free options exercisable at $3.40, aiming to bolster clinical and commercial milestones.
- Share Purchase Plan capped at A$2 million with $30,000 max per shareholder
- Shares priced at A$1.94, a 16.4% discount to last trade price
- Free-attaching quoted options at a 3-for-4 ratio, exercisable at $3.40
- Placement raised approximately $12 million including Keysight participation
- Funds targeted for FDA submissions, clinical trials, and commercialisation
Capital Raising Strategy
EMVision Medical Devices Limited (ASX, EMV) has announced a Share Purchase Plan (SPP) designed to raise up to A$2 million, offering eligible shareholders in Australia and New Zealand the opportunity to purchase shares at A$1.94 each. This price represents a 16.4% discount to the last closing price before the offer announcement, providing an attractive entry point for investors.
The SPP allows shareholders to subscribe for up to A$30,000 worth of shares, with the company reserving the right to scale back applications if oversubscribed. Importantly, the offer is non-renounceable, meaning shareholders cannot transfer their entitlement to others.
Incentivising Participation with Free Options
Alongside the discounted shares, EMVision is issuing free-attaching quoted options at a ratio of three options for every four shares subscribed under the SPP. These options carry an exercise price of $3.40 and expire two years from issue. While the options themselves do not raise immediate funds, their potential exercise could inject approximately $18.4 million into the company, subject to market conditions and shareholder decisions.
The options are also being issued to participants in recent placements, including a significant placement to Keysight Technologies, Inc., which subscribed for shares at the same issue price and will receive options on the same terms.
Use of Funds and Strategic Outlook
Funds raised through the SPP and placements will primarily support EMVision’s ongoing clinical trials, regulatory submissions, most notably the FDA De Novo submission for the emu™ bedside brain scanner, and initial commercialisation efforts. Additional resources will be allocated to advancing the First Responder device through clinical validation and production readiness, alongside general working capital needs.
This capital raising initiative aligns with EMVision’s broader strategy to transition its innovative medical devices from development to market, navigating the complex regulatory landscape and fostering adoption among healthcare providers.
Risks and Market Considerations
Investors should be mindful of the speculative nature of the investment. The company’s share price may fluctuate between the offer announcement and share issuance, and there is no guarantee that the options will be exercised. The offer is also subject to ASX approval for quotation of the new class of options, which is not assured.
EMVision has disclosed a comprehensive set of risks including the need for future capital, regulatory hurdles, intellectual property protection, competitive pressures, and operational challenges. These factors underscore the inherent uncertainties in commercialising cutting-edge medical technology.
Governance and Shareholder Participation
The company’s board has opted not to participate in the SPP to avoid displacing retail shareholders. Keysight Technologies remains a substantial shareholder with an 8.86% voting power, reflecting its strategic interest in EMVision’s technology.
The timetable for the SPP spans from late September to late October 2025, with shares expected to commence trading shortly after issuance. Shareholders are encouraged to consider their investment objectives carefully and seek professional advice before participating.
Bottom Line?
EMVision’s capital raise marks a pivotal step toward commercialising its medical devices, but investors should watch subscription uptake and regulatory progress closely.
Questions in the middle?
- Will the SPP reach its $2 million cap or require scale-back?
- How will ASX respond to the application for quotation of the new options?
- What is the timeline and likelihood of FDA clearance for the emu™ device?