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Underwritten rights issue to raise $5.4 million
05 / 05 / 2008
Sunshine Heart, Inc. (ASX: SHC) today announced the terms of an underwritten non-renounceable rights issue to raise $5.4 million. Under the rights issue, eligible shareholders will be invited to subscribe for 4 new shares for every 11 shares held at the record date at an offer price of 7 cents per share. The price represents a 23 per cent discount to the volume weighted average price of Sunshine Heart's shares over the month preceding this announcement.
The funds raised will be used to support the Company's ongoing activities and the proposed US clinical trial of C-PulseT pursuant to an Investigational Device Exemption application which is currently being considered by the US Food and Drug Administration.
The rights issue has been fully underwritten by Sunshine Heart's major shareholders GBS Venture Partners and CM Capital.
Sunshine Heart's Chief Executive Officer, Donald Rohrbaugh said "the equity raising will strengthen the Company's balance sheet ahead of the forthcoming United States clinical trial and provide us with some financial flexibility going forward."
"One of the principal advantages of the rights issue is that all eligible Sunshine Heart shareholders will have an opportunity to participate in the fund raising."
"Shareholders will also have the opportunity to apply for more than their pro rata entitlement of new shares".
The Prospectus has been lodged with the Australian Securities and Investments Commission. A copy of the Prospectus will be sent to eligible shareholders on 21 May 2008. A copy of the Prospectus is available for viewing on the company's website at www.sunshineheart.com or can be obtained (free of charge) by calling the company on +61 2 8424 7700 at any time between 8:30 am and 5:00 pm (AEST), Monday to Friday. A copy of the Prospectus is also available on the ASX website www.asx.com.au.
Offers of shares under the rights issue to eligible shareholders will be made in, or accompanied by, a copy of the Prospectus. In deciding whether to take up the offer of new shares, eligible shareholders should consider the Prospectus. Eligible shareholders who wish to subscribe for shares under the rights issue will need to complete the Entitlement and Acceptance Form that will accompany the Prospectus that is sent to them. The new shares will be fully paid and upon allotment will rank equally with existing shares on issue.
The entitlements will not be tradeable on the ASX or otherwise transferable.
Existing option holders will not participate in the rights offer unless they exercise their options prior to the record date.
KEY STATISTICS
Offer price per Share $0.07 per Share
Shares offered under this Prospectus 77.8 million Shares
Amount to be raised under this Prospectus $5.4 million
Shares on issue following the Offer 291.7 million Shares
Market capitalisation at the Offer price $20.4 million
IMPORTANT DATES+
Announcement of Offer Monday 5 May 2008
Lodgement of the Prospectus with ASIC and ASX Monday 5 May 2008
Application to ASX for listing of New Shares Monday 5 May 2008
Shares trade ex-rights Tuesday 13 May 2008
Record Date to determine Entitlements Monday 19 May 2008
Despatch of Prospectus and Entitlement and Acceptance Form Wednesday 21 May 2008
Opening date Wednesday 21 May 2008
Closing Date for Offer and date payment required to be received in full Thursday 5 June 2008
Securities quoted on a deferred settlement basis by ASX Friday 6 June 2008
Despatch date of holding statements Monday 16 June 2008
Deferred settlement trading ends and normal trading commences Tuesday 17 June 2008
+ Dates are indicative only. Sunshine Heart in consultation with the Underwriters may vary these dates without notice, but only in accordance with ASX Listing Rules.
The funds raised will be used to support the Company's ongoing activities and the proposed US clinical trial of C-PulseT pursuant to an Investigational Device Exemption application which is currently being considered by the US Food and Drug Administration.
The rights issue has been fully underwritten by Sunshine Heart's major shareholders GBS Venture Partners and CM Capital.
Sunshine Heart's Chief Executive Officer, Donald Rohrbaugh said "the equity raising will strengthen the Company's balance sheet ahead of the forthcoming United States clinical trial and provide us with some financial flexibility going forward."
"One of the principal advantages of the rights issue is that all eligible Sunshine Heart shareholders will have an opportunity to participate in the fund raising."
"Shareholders will also have the opportunity to apply for more than their pro rata entitlement of new shares".
The Prospectus has been lodged with the Australian Securities and Investments Commission. A copy of the Prospectus will be sent to eligible shareholders on 21 May 2008. A copy of the Prospectus is available for viewing on the company's website at www.sunshineheart.com or can be obtained (free of charge) by calling the company on +61 2 8424 7700 at any time between 8:30 am and 5:00 pm (AEST), Monday to Friday. A copy of the Prospectus is also available on the ASX website www.asx.com.au.
Offers of shares under the rights issue to eligible shareholders will be made in, or accompanied by, a copy of the Prospectus. In deciding whether to take up the offer of new shares, eligible shareholders should consider the Prospectus. Eligible shareholders who wish to subscribe for shares under the rights issue will need to complete the Entitlement and Acceptance Form that will accompany the Prospectus that is sent to them. The new shares will be fully paid and upon allotment will rank equally with existing shares on issue.
The entitlements will not be tradeable on the ASX or otherwise transferable.
Existing option holders will not participate in the rights offer unless they exercise their options prior to the record date.
KEY STATISTICS
Offer price per Share $0.07 per Share
Shares offered under this Prospectus 77.8 million Shares
Amount to be raised under this Prospectus $5.4 million
Shares on issue following the Offer 291.7 million Shares
Market capitalisation at the Offer price $20.4 million
IMPORTANT DATES+
Announcement of Offer Monday 5 May 2008
Lodgement of the Prospectus with ASIC and ASX Monday 5 May 2008
Application to ASX for listing of New Shares Monday 5 May 2008
Shares trade ex-rights Tuesday 13 May 2008
Record Date to determine Entitlements Monday 19 May 2008
Despatch of Prospectus and Entitlement and Acceptance Form Wednesday 21 May 2008
Opening date Wednesday 21 May 2008
Closing Date for Offer and date payment required to be received in full Thursday 5 June 2008
Securities quoted on a deferred settlement basis by ASX Friday 6 June 2008
Despatch date of holding statements Monday 16 June 2008
Deferred settlement trading ends and normal trading commences Tuesday 17 June 2008
+ Dates are indicative only. Sunshine Heart in consultation with the Underwriters may vary these dates without notice, but only in accordance with ASX Listing Rules.