Overview of the Placement
HeraMED Limited (ASX: HMD), a leader in digital transformation for maternity care, announced a successful $1.02 million institutional placement. This placement, primarily supported by three institutional investors, includes HeraMED’s first investment from a major impact fund. The funds will be allocated to bolster HeraMED’s four-point strategic plan, particularly in advancing non-dilutive funding and grant acquisition.
The placement was offered at 1.7 cents per share, reflecting a ~19% discount to the 15-day VWAP of 2.1 cents. This follows a similar capital raise previously completed, with shareholder approval expected during an Extraordinary General Meeting (EGM) scheduled for December 12, 2024.
CEO Insights on Strategic Growth
Anoushka Gungadin, HeraMED’s Managing Director and CEO, highlighted the transformative impact of this investment: “This strategic investment provides HeraMED with crucial capital to drive our growth and validates our commitment to creating social impact in healthcare. The global healthcare sector faces challenges in accessibility, workforce availability, and rising costs. HeraCARE is proving to be an effective solution to these issues, supported by an expanding base of evidence.”
With the added funding, HeraMED aims to scale the commercialization of its HeraCARE platform while expanding its grant strategy to support research partnerships and evidence-based care models. The company’s goal is to enhance maternity outcomes globally, especially in underserved communities.
Investment Utilization and Strategic Focus
The funds from the placement will enable HeraMED to:
- Strengthen its financial standing for future growth.
- Invest in dedicated resources to pursue grants and non-dilutive funding sources.
- Expand research collaborations to develop new, evidence-backed care models for maternity health.
Growth in Grant Opportunities
The maternal health sector is poised for technological transformation, and HeraMED is committed to leveraging this trend. In 2024, the volume and value of grants focused on remote maternity care grew significantly across Australia, the US, and Europe. HeraMED intends to use the new capital to increase its chances of securing these grants, aligning with its commitment to innovative, accessible maternity care solutions.
Placement Terms and Timeline
The placement will see the issuance of 60 million new ordinary shares at 1.7 cents per share, with Westar Capital Limited managing the process and receiving a 6% fee upon completion. The tentative timeline includes:
- ASX Announcement of Offer: November 11, 2024
- EGM for Approval: December 12, 2024
- Settlement of Placement Shares: December 16, 2024
- Allotment and Trading of Placement Shares: December 17, 2024
HeraMED’s latest investment demonstrates the company’s strategic commitment to advancing maternity care technology, with potential for a broad, positive impact on healthcare accessibility and outcomes.
