LONDON: Ondine Biomedical Inc., a Canadian life sciences company listed on AIM (OBI), has announced a significant fundraising effort to secure at least £3 million (C$5.15 million) from mainly existing shareholders.
The initiative includes a placement and a subscription, aiming to issue over 43 million new common shares at 7 pence each, a 36.6% premium over the closing price on May 2, 2024.
The proceeds will bolster general working capital, support US Phase 3 Clinical Trial preparations, and enhance the sales of Steriwave® nasal decolonisation therapy, which has halved post-surgical hospital infection rates without fostering antimicrobial resistance.
Key executives and directors are participating in the subscription, contributing approximately £0.29 million (C$0.49 million). The company is also negotiating with HCA Healthcare’s Health Insight Capital for Phase 3 clinical trial funding and has received assurances from CEO Carolyn Cross for additional interim funding if necessary.
The fundraising is part of Ondine’s broader strategy to secure non-dilutive funding and strategic partnerships for its US FDA submission and market launch, aiming to extend its financial runway through mid-Q3 2024, potentially further with additional sales or future fundraisings.
In related transactions, CEO Carolyn Cross and her husband, Robert Cross, have provided the company with loans totaling over £330,000, deemed fair by independent directors and the company’s adviser, Singer Capital Markets. These transactions and director participations in the fundraising are subject to AIM Rule 13, with further details to be disclosed in upcoming announcements.
Carolyn Cross, CEO of Ondine, said: “We are pleased to have the support of existing and new investors through this fundraising which meets our near-term working capital needs and assists our rapid commercial growth rate. This funding will take us forward commercially and further our discussions with industry partners on our clinical, financial, and global distribution objectives.
We believe that our product, Steriwave, is very well positioned to help hospitals meet their infection control objectives, reduce their antibiotic usage and combat AMR in what is expected to be a multibillion-dollar market. Our commercial efforts are benefitting from the growing support for pre-surgical nasal decolonisation by leading organisations, as well as our real-world clinical successes in Canadian hospitals and adoption in other approved territories.
While we are currently focused on nasal decolonisation to prevent healthcare-associated infections, Steriwave is just the first of seven major market opportunities for our platform technology. In due course, pipeline products targeting the treatment of burns, wounds, chronic sinusitis, ventilator-associated pneumonia, and fungal infections will leverage our regulatory filings and the clinical successes related to our nasal decolonisation product.”
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