Norwood Abbey raises $4.13 million

Norwood Abbey (ASX: NAL) has raised $4.13 million in a placement to institutional and professional investors.

The funds will primarily be used to support the manufacture and commercialisation of the company's laser drug delivery device and for ongoing corporate costs, according to chairman Peter Hansen.

"We are very pleased to have effected this fund raising especially in light of the difficult capital markets environment," he said in a statement.

The company recently entered into an agreement with US company Ferndale Laboratories to commercialise the device for delivery of Ferndale's topical anaesthetic Ela-Max.

Jeff Bell, Norwood's chief financial officer, said that the placement grew from a series of investor presentations that the company held recently that generated a lot of interest in the company.

"We decided now was an opportune time," he explained. "Originally we were hoping for $3 million. When it came out as $4.1 million we were pleasantly surprised."