Rhinomed today announces a fully underwritten non-renounceable rights issue of fully paid ordinary shares, to raise approximately A$3.54 million.
The funds raised will be used to drive growth in Rhinomed’s major markets; support the Company’s leading products, including the Mute range of products (Nasal Dilator, Mouth Tape, Turbine Nasal Dilator) and the Rhinoswab range of nasal swabs; pay down some existing debt of the Company; provide general working capital and the costs of the rights issue.
Rhinomed’s technology has been developed and commercialised in large addressable markets in sport, sleep disorders and point of care diagnostics. Rhinomed intends to grow its presence and market share across these rapidly growing markets. The funds raised in this rights issue will play a crucial role in the roll-out of this brand and market expansion strategy.
“This rights issue comes at a time when Rhinomed is experiencing rapid growth across all its major markets. The Company recorded revenues in FY24 of $9.2m (unaudited), up 21% year on year.” said Rhinomed CEO, Michael Johnson. “We have put in place a growth strategy that will see our Mute Nasal Dilator and recently released Mouth Tape grow their presence across our retail network. We are progressing through the regulatory pathway with our Rhinoswab and Rapid Antigen Testing Partners and are focused on driving the business to a breakeven and profitable position via the right sizing program.”
“We are particularly heartened by the support for this raising of our largest shareholder, and we are confident that it will be similarly supported across the entire shareholder base,” Johnson added.
More information about the rights issue can be found here, and the prospectus here.