Nerve technology developer Orthocell (ASX:OCC) has received firm commitments from institutional investors to raise $13 million in a share placement.
The company, which is commercialising its CellGro nerve regeneration product, received commitments for well in excess of the figure sought from existing and new investors.
The company will also proceed with a share purchase plan for eligible shareholders to raise a further $5 million.
Pre-clinical studies indicated CelGro facilitated the regeneration of severed peripheral nerves, returning them to normal nerve structure.
This reinforced earlier human trials that CelGro restored nerve sensation, reducing the need for sutures.
Orthocell managing director Paul Anderson said: “The success of this transaction is an endorsement of Orthocell’s business strategy, progress in commercialising CellGro and the exciting outlook for the company.”
The funds will go to accelerate regulatory approvals in the US, EU and Australia, and scale up manufacturing facilities.
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