EBR Systems (ASX:EBR) is undertaking a fully underwritten institutional placement and entitlement offer to raise AU$150 million, comprising a AU$64.4 million institutional placement and a fully underwritten one-for-two pro rata accelerated non-renounceable entitlement offer to raise about AU$85.6 million, according to a Thursday Australian bourse filing.
The company said the institutional placement comprises a AU$29.4 million tranche one placement and a AU$35 million conditional tranche two placement to certain existing securityholders, subject to securityholder approval.
Funds advised by Brandon Capital Partners, which are existing securityholders, have committed to take up to AU$46.65 million in aggregate, including AU$35 million via the tranche two placement and sub-underwriting the retail component of the entitlement offer to AU$11.65 million, the filing added.
Proceeds will be used to support sales and marketing expansion, manufacturing scale-up, research and development, clinical activities, and working capital, with EBR expecting a pro forma cash balance of about AU$185.3 million following completion and intending to fund the company through to cashflow breakeven, per the filing.