EBR Systems Completes Institutional Components of Capital Raising

EBR Systems (ASX: EBR) has completed the institutional placement and institutional component of its 1-for-2 accelerated non-renounceable entitlement offer, securing approximately $106.4 million at $0.38 per new CHESS Depositary Interest (CDI).

The institutional raising comprises approximately $64.4m from the placement and $42m from the institutional entitlement offer.

The placement includes a $29.4m first tranche that does not require securityholder approval, along with a $35m second tranche that remains subject to approval at a special meeting.

The capital raising will continue next week with a fully underwritten retail entitlement offer targeting a further $43.6m from eligible retail securityholders.

Solid Institutional Support

The institutional placement received support from existing and new eligible securityholders and was conducted alongside the institutional component of the entitlement offer.

Eligible institutional securityholders took up $8.4m of entitlements under the institutional offer.

The remaining $33.6m of institutional entitlements, including new CDIs not taken up by foreign ineligible securityholders, were placed to eligible institutional and sophisticated investors through the bookbuild.

Certain funds advised by Brandon Capital, already existing securityholders, subscribed for $35m of new CDIs under the second placement tranche and provided $11.65m of sub-underwriting for the retail entitlement offer.

The first placement tranche and the institutional entitlement offer are expected to settle on 11 June, with new CDIs scheduled for issue and ASX trading on 12 June.

Retail Offer to Open

The retail entitlement offer will open at 9am Sydney time on 11 June and close at 5pm Sydney time on 22 June.

Eligible retail securityholders must have been registered holders of CDIs at 7pm Sydney time on 5 June, with a registered address in Australia or New Zealand.

Participants must not be located in, or acting for the account or benefit of a person in, the US.

Retail securityholders who were invited to participate in the institutional entitlement offer, or treated as ineligible institutional securityholders, will not be eligible for the retail component.

Further details will be provided in the retail entitlement offer booklet, which is expected to be lodged with ASX on 11 June.

Second Tranche Timetable

The $35m second tranche placement will require securityholder approval at an extraordinary general meeting expected in August.

Settlement and allotment of new CDIs under the second tranche are also expected in August, subject to approval.

The broader entitlement offer timetable provides for retail entitlement offer results on 24 June, retail settlement on 26 June and allotment of retail securities on 29 June.

Normal trading of securities issued under the retail entitlement offer is expected to begin on 30 June.

Wireless Cardiac Pacing Technology

EBR Systems is developing wireless cardiac pacing technology for the treatment of cardiac rhythm disease.

Its Wireless Stimulation Endocardially (WiSE) technology is designed to remove the need for cardiac pacing leads, which have historically been a major source of complications and reliability issues in cardiac rhythm disease management.

The initial product targets heart failure patients requiring cardiac resynchronisation therapy by stimulating the left ventricle without the need for a coronary sinus lead.

WiSE is described as the world’s only wireless endocardial pacing system in clinical use for stimulating the left ventricle, using a cardiac implant roughly the size of a large grain of rice.