CONNEQT Health has raised $3.1 million through an institutional placement to fuel growth of its Pulse vascular health device, supported by both new and existing investors including its largest shareholder.
- Raised $3.1 million via placement at $0.045 per share
- Largest shareholder C2 Ventures to invest $1.2 million subject to approval
- Funds earmarked for Pulse inventory, manufacturing, marketing, and regulatory costs
- Placement shares issued partly under ASX Listing Rule 7.1 capacity
- Stralis Capital Partners acted as sole lead manager with standard fees
Capital Raise to Support Growth Ambitions
CONNEQT Health Limited (ASX – CQT), a company focused on advancing vascular health technology, has successfully completed a $3.1 million institutional placement. The capital raise, priced at $0.045 per share, is designed to underpin the commercial expansion of its flagship product, the CONNEQT Pulse. This device, which leverages the company’s proprietary vascular biomarker technology, targets hypertension and cardiovascular disease management.
Strong Backing from Institutional and Sophisticated Investors
The placement attracted solid support from both new and existing institutional investors, reflecting confidence in CONNEQT’s growth trajectory. Notably, C2 Ventures Pty Limited, the company’s largest shareholder controlled by directors Craig Cooper and Niall Cairns, has committed to subscribing for $1.2 million worth of shares. However, this portion of the placement awaits shareholder approval at the upcoming general meeting, introducing a degree of uncertainty regarding final participation.
Strategic Allocation of Funds
Proceeds from the placement will be strategically deployed across several key areas – ramping up inventory and device manufacturing to meet anticipated demand, intensifying marketing and sales efforts to accelerate market penetration, advancing product development and navigating regulatory pathways, and supporting general working capital and corporate operations. This comprehensive allocation underscores CONNEQT’s commitment to scaling its Pulse offering while maintaining operational flexibility.
Placement Details and Market Implications
The placement shares are being issued partly under the company’s ASX Listing Rule 7.1 capacity, with 42.2 million shares to be issued by the end of December 2025. The shares allocated to C2 Ventures, totaling approximately 26.7 million, will be issued subject to shareholder approval and outside the placement capacity. The placement price represents a 15.1% discount to the last closing price and a 6.3% discount to the 15-day volume weighted average price, a typical concession to incentivize investor participation.
Professional Management and Fees
Stralis Capital Partners Limited acted as the sole lead manager for the placement, earning management and selling fees totaling 6% of gross proceeds, excluding amounts raised from C2 Ventures and other directors. This arrangement aligns with market norms and ensures professional execution of the capital raise.
Overall, this capital injection positions CONNEQT Health to accelerate its commercial ambitions in the competitive medical technology landscape, particularly in vascular health management.
Bottom Line?
The success of this placement sets the stage for CONNEQT’s next growth phase, but shareholder approval and market response will be critical to watch.
Questions in the middle?
- Will shareholder approval for C2 Ventures’ participation be secured without issue?
- How quickly will the company deploy funds to scale Pulse manufacturing and sales?
- What impact will the placement discount have on share price momentum post-issuance?