BTC Health Raises $2M with Director and New Investor Backing
BTC Health has raised $2 million through a share placement priced at a slight premium, with director Martin Kahanovitz participating and a new South African investor joining the register.
- Raised $2 million via placement of 32.8 million shares at $0.061 each
- Placement price set at 3% premium to last close and no discount to VWAP
- Director Martin Kahanovitz to subscribe $40,000, subject to shareholder approval
- New substantial shareholder Visio, a South African investment manager, joins
- Funds earmarked for working capital, inventory growth, and product rollout
Capital Raise Strengthens Balance Sheet
BTC Health Ltd (ASX – BTC), a pooled development fund focused on innovative medical products in Australia and New Zealand, has successfully raised $2 million through a share placement to professional and sophisticated investors. The placement involved issuing 32,786,885 fully paid ordinary shares at $0.061 each, representing a modest 3% premium to the last closing price and aligning with the 15-day volume weighted average price.
Director Participation Signals Confidence
Notably, BTC Health’s director Martin Kahanovitz has committed to subscribing for 655,737 shares worth $40,000. This participation, subject to shareholder approval at a forthcoming general meeting, underscores management’s confidence in the company’s strategic direction and growth prospects. The director’s involvement on the same terms as other investors adds a layer of alignment between leadership and shareholders.
New Substantial Shareholder Joins
The placement also welcomed Visio, a South African investment manager, as a new substantial shareholder. This international backing could provide BTC Health with broader capital market access and potential strategic benefits as it expands its portfolio of specialised therapeutics and medical devices.
Use of Funds and Outlook
Funds raised will be allocated towards working capital, expanding inventory, rolling out new products, and general corporate purposes. Executive Chairman Dr Richard Treagus emphasized the importance of disciplined execution and prudent capital management to drive sustainable growth. The capital injection is expected to provide the financial flexibility needed to advance BTC Health’s operational priorities in a competitive healthcare investment landscape.
Next Steps
Settlement of the placement (excluding the director’s component) is scheduled for early December, with shares to rank equally with existing ordinary shares. Investors will be watching closely for the outcome of the shareholder approval process and how effectively the company deploys the new capital to enhance its portfolio and market position.
Bottom Line?
BTC Health’s $2 million raise, bolstered by director and new investor support, sets the stage for its next growth phase.
Questions in the middle?
- Will shareholder approval for the director’s share subscription proceed smoothly?
- How will BTC Health prioritise the allocation of funds across working capital and product rollout?
- What strategic role will Visio play as a new substantial shareholder?
