Allied Healthcare closes $10.4m rights offer

Allied Healthcare (ASX:AHZ) has raised $10.4 million through a rights issue as it ramps up commercialisation of its CardioCel cardiovascular patch.

The offer for one new share for every five shares held was taken up by around 2700 shareholders, or about 70% of eligible investors. Allied Healthcare offered the new shares at the issue price of $0.05.

A top-up facility for the offer was oversubscribed, so the rights issue did not have a shortfall.

“This capital places Allied in a very strong position as we launch CardioCel in Europe and progress the US approval, as well as our continued investment into therapeutic vaccines with Professor Ian Frazer,” Allied Healthcare Group CEO Lee Rodne said.

The company received CE Mark approval for CardioCel in August. The product has also previously been granted special access approval in Australia under the TGA’s Authorised Prescriber Scheme.

Ian Frazer is the founder and chairman of Coridon, which has developed an in-trials vaccine for herpes simplex virus-2 (HSV-2). Coridon is now majority owned by Allied Healthcare.

Allied Healthcare (ASX:AHZ) shares were trading 6.4% lower at $0.117 as of around 1 pm on Thursday.