CollTech raises $1.1m

Western Australian collagen purification company CollTech (ASX:CAU) has raised AUD$1.1 million by way of a private placement to institutional and professional investors.

The capital raising was managed by BBY Limited via placement of fully paid ordinary shares at 9.5 cents per share and represents an 11.7 per cent discount to CollTech's weighted volume average price in the 5 days prior to August 8.

CEO Michael Pixley said the money would be used for marketing in Europe and North America. CollTech has developed and patented a manufacturing technology enabling the commercial extraction of collagen from ovine (sheep) skins, which it claims has higher yields and purity than that extracted from traditional bovine and porcine sources.

CollTech has also launched a share purchase plan, after which it expects to have $3.2 million in the bank.