Bio-separations and reproductive biotechnology company Memphasys (ASX:MEM) is conducting a placement and entitlement offer to raise $4.23 million to drive commercial opportunities for its Felix product.
Felix is a premium, automated device with single-use cartridges for preparing sperm for human IVF procedures. The device gently separates sperm from a semen sample in 6 minutes using electrophoresis and size exclusion membranes without causing damage to sperm DNA.
Under the placement, Memphasys will issue 210 million fully paid ordinary shares at $0.01 to sophisticated and institutional investors to raise $2.1 million.
This will include a conversion of $511,717 of debt to equity.
Canaccord Genuity is acting as Lead Manager to the placement.
Memphasys, which has a market capitalisation of $11.51 million, plans to raise the remaining funds through the entitlement offer, under which eligible shareholders can subscribe for 2 new shares for 9 already held at the same price as the placement.
Under both the placement and entitlement offer, Mephasys will issue one free attaching option for every two shares purchased, exercisable at $0.02 and expiring 2 years from their date of issue.
Along with the Felix product development, the proceeds raised will also be used to continue driving product development activities with RoXsta and AI-Port, as well as settle any outstanding debts and creditors and provide general working capital.
Former Memphasys Directors Andrew Goodall and Alison Coutts have subscribed for about 37.4 million and 1.419 million shares, respectively, under the placement.
These shares will be issued subject to shareholder approval at the next general meeting.
Memphasys is an ASX-listed reproductive biotechnology company focused on supporting those seeking IVF treatment with the use of its Felix device.
As of 30 September 2023, the company had $638,000 cash and cash equivalents at hand, according to its latest quarterly report.