Mesoblast taps Bell Potter for $98m equity raising
Biotech Mesoblast had its broker Bell Potter launch a $97.7 million equity raising on Friday morning to fund trials.
Biotech company Mesoblast is tapping equity capital markets again. Paul Harris
The offer was split into a $36.6 million placement and a $61.1 million rights issue. The latter was structured as a pro-rata accelerated non-renounceable entitlement offer on a one-for-four basis.
The 30¢ a share offer price was pegged at a 25.9 per cent discount to Mesoblast’s 40.5¢ last close. It represented a 20 per cent discount to the TERP.
Mesoblast told potential investors proceeds would be used to fund adult phase 3 trials for treatments for steroid-refractory acute graft versus host disease (a complication of bone marrow transplants) and chronic lower back pain.
Mesoblast is no stranger to capital markets. The biotech raised $37 million from investors in April at 85¢ per share.
Since listing on the ASX in late 2004, the company has raised $1.113 billion from investors and burnt through $1.095 billion in net operating cash outflow, according to Ownership Matters.
Bell Potter was calling for bids into the placement and the institutional leg of the rights issue by 12pm on Monday.
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