Overview of SomnoMed's Pro-Rata Entitlement Offer

SomnoMed Limited (ASX: $SOM) is conducting a pro-rata accelerated non-renounceable entitlement offer to eligible shareholders, aiming to raise approximately $22.6 million before expenses. The offer comprises about 107.5 million new shares at an issue price of $0.21 per new share, based on a ratio of 1 new share for every 1.01 shares held on the record date. The retail entitlement offer is fully underwritten by Wilsons and closes on May 1, 2024. The purpose of the offer is to fund a restructuring plan, seek additional funding through equity, pay down debt, and invest in manufacturing capacity initiatives. The offer is governed by the laws applicable in New South Wales.

Executive Commentary on the Entitlement Offer

The company is committed to utilizing the proceeds from the entitlement offer to strengthen its financial position, support its restructuring plan, and invest in initiatives that will enhance its manufacturing capacity. This strategic move aligns with our long-term goals and will enable us to navigate operational challenges, pursue market opportunities, and achieve our revised financial guidance for FY24. We are grateful for the support of our major shareholder, TDM, and the underwriting arrangements made with Wilsons, TDM, Guy Russo, Amrita Blickstead, and Karen Borg, which demonstrate confidence in our plans and prospects.

Summary of SomnoMed's Announcement

SomnoMed Limited's pro-rata entitlement offer aims to raise funds for a restructuring plan, additional equity funding, debt payment, and manufacturing capacity initiatives. The company has obtained commitments from major shareholders and underwriting arrangements, providing a strong foundation for the offer. The announcement also outlines the company's long-term strategy, market opportunities, and revised financial guidance for FY24. It emphasizes the importance of thorough consideration of the prospectus and professional advice for potential investors. The comprehensive overview of risks, governance practices, and legal proceedings offers valuable insights for stakeholders.