Medical Developments International (ASX: $MVP) capital raising and FY24 unaudited results

Medical Developments International Limited (ASX: $MVP) has announced a fully underwritten equity raising of $10.0 million, comprising a $5.5 million placement to institutional investors and a $4.5 million pro rata accelerated non-renounceable entitlement offer. The proceeds from this capital raising will primarily be used to fund targeted investment in growth initiatives to accelerate the penetration of Penthrox in Australian and international markets. Additionally, the company has reported unaudited results for FY24 in line with expectations, with a 5ppt increase in gross margin, operating costs down by approximately $5.0 million, and strong improvements in Underlying EBIT and Free Cashflow. The positive momentum in margins and earnings is expected to continue, with positive operating cashflow anticipated by the end of FY25.

Executive Commentary on Capital Raising and FY24 Unaudited Results

The business remains on a path to positive operating cash flow. Performance over the last year has demonstrated strong strategic momentum. Penthrox demand continues to be strong with encouraging lead indicators for future growth. This modest raise will support investment to accelerate our progress. I thank my fellow Board members and our Chief Executive Officer Brent MacGregor for their support in this raise.

Summary of Capital Raising and FY24 Unaudited Results

Medical Developments International Limited (ASX: $MVP) has successfully announced a fully underwritten equity raising of $10.0 million, with the aim to accelerate the penetration of Penthrox in Australian and international markets. The company's unaudited results for FY24 have been in line with expectations, showing a 5ppt increase in gross margin, a reduction of approximately $5.0 million in operating costs, and strong improvements in Underlying EBIT and Free Cashflow. Looking ahead, the company anticipates positive momentum in margins and earnings to continue, with the expectation of achieving positive operating cashflow by the end of FY25. The company's strategic momentum and strong Penthrox demand provide encouraging lead indicators for future growth, supported by the targeted investment from the capital raising. The company's ambitions and goals are aligned with accelerating progress and maintaining a strong position in the market.