- Mesoblast Limited (MESO -2.7%) has announced that it has entered into a subscription agreement worth $110M (A$138M) with the issue of 60M shares in a private placement led by a strategic US investor group (SurgCenter Development).
- The per-share price of A$2.30 implies a ~6.5% discount to the closing price as of February 25. Raising a further $34M (A$43.2M), investors also receive warrants for another 15M shares at A$2.88 per share, a 25% premium to the placement price.
- The company intends to use the proceeds for operational and regulatory requirements ahead of the late-stage meetings with the FDA in Q2 and Q3 2020 and potential regulatory approval of remestemcel-L in graft versus host disease, among others.
- With the private placement, the company’s Pro-forma cash balance rises to $187.5M from $77.5M as of Q2 2020.