The Hydration Pharmaceuticals Company (ASX:HPC), also known as Hydralyte North America, has completed an entitlement offer to raise $2.7 million for marketing and growth initiatives.
Under the offer, eligible shareholders could apply for one fully paid ordinary HPC share for every 2.27 shares held at an issue price of $0.045 per new share. It follows a $1.5 million share placement completed by the $8.10 million market capitalisation company, with another $400,000 on the way from the exercise of warrants by Pure Asset Management.
Hydralyte received applications under the entitlement offer for 4,335,332 new shares to raise $200,000, meaning a shortfall of around 68.1 million new shares remained.
The company notes that 55.55 million of the shortfall shares have been subscribed for by sophisticated and professional investors in their capacity as sub-underwriters of the offer to raise $2.5 million.
As such, the total proceeds of the entitlement offer, placement, and exercise of Pure Asset Management warrants is $4.6 million.
Commenting on the entitlement offer, Hydralyte Chief Executive Officer Oliver Baker says: “Upon completion of this initiative, the company will raise approximately A$4.6 million in new capital.
“This provides financial flexibility to progress a number of strategic market and product development initiatives, which are anticipated to underpin further near-term sales growth”
This provides financial flexibility to progress a number of strategic market and product development initiatives, which are anticipated to underpin further near-term sales growth.
Hydralyte North America has continued to deliver operational successes, which included record half-year revenue during FY2023, as well as pleasing sales growth in July. With the company’s ongoing reduction in costs, new funds, and growing revenue profile, HPC is well-placed to continue its strong momentum.”
The Hydration Pharmaceuticals Company is an ASX-listed hydration solutions business.
Write to Aaliyah Rogan at Mining.com.au