Avita Medical Raises $15M Through Australian Equity Placement

Avita Medical has completed a private placement to raise $15 million through the issuance of 17.2 million new shares at $1.32 per share. Proceeds will be used for working capital and strategic growth of its therapeutic acute wound portfolio, expected to cover operations until free cash flow begins in 2026. MST Financial Services acted as sole lead manager.

Avita Medical, Inc. (ASX: AVH, NASDAQ: RCEL) has successfully completed a private placement in Australia, raising approximately US$15 million (A$23 million) through the issuance of 17.2 million new CHESS Depositary Interests (CDIs). The placement was priced at A$1.32 per CDI, representing an 11% discount to the last closing price of A$1.48.

The funds will be utilized for working capital requirements and strategic flexibility to support the company's therapeutic acute wound portfolio growth. AVITA Medical expects this capital to sustain operations until it achieves free cash flow in 2026. The new CDIs are scheduled for settlement on August 19, 2025, with trading on the ASX commencing August 20, 2025 [1].

The strategic timing of this capital raise is particularly noteworthy, as management explicitly states these funds will bridge operations until the company achieves free cash flow in 2026. The structure of this raise is telling—by tapping Australian investors rather than U.S. markets despite dual-listing status, AVITA likely found more favorable reception among ASX investors for this financing round. The 11% discount is relatively modest for a biotech capital raise, suggesting reasonable market confidence in the company's trajectory [2].

Most significantly, this announcement provides clear visibility into AVITA's financial runway. Management's explicit statement that this funding will cover operations until free cash flow begins in 2026 offers a concrete timeline for reaching operational self-sufficiency. For a therapeutic company, projecting positive free cash flow within approximately 18 months signals confidence in accelerating commercialization of their acute wound care portfolio [1].

New investors should note these shares will be fully tradable by August 20th and will rank equally with existing shares, avoiding any preferential treatment for the placement participants beyond the initial discount [1].

MST Financial Services Pty Limited acted as sole lead manager for the placement [1].

References:
[1] https://www.stocktitan.net/news/RCEL/avita-medical-successfully-completes-australian-equity-7jf3yj2yg0kr.html
[2] https://www.ainvest.com/news/avita-medical-completes-australian-equity-raise-raising-23-million-2508/