Why the Next Science (ASX:NXS) share price is on watch

The Next Science Ltd (ASX: NXS) share price has been placed on a trading halt today following the announcement of a capital raise.
The post Why the Next Science (ASX:NXS) share price is on watch appeared first on Motley Fool Australia. –

Health technology shares

The Next Science Ltd (ASX: NXS) share price was placed on a trading halt today after a capital raise was announced.

The Next Science share price closed yesterday at $1.32.

What does Next Science do?

Bacterial biofilms are a leading cause of antimicrobial resistance. They can be found in almost all aspects of human health, industry and food production. With nearly 80% of all global bacterial infections associated with biofilm bacteria, Next Science aims to address this problem.

The Australian medical company is developing and commercialising its Xbio technology. This patented product attacks biofilm structures by breaking metallic bonds that hold the extracellular polymeric substance together.

This in turn may reduce reliance on use of antibiotics and other infection treatments.

Why the capital raise?

Next Science is undertaking a capital raise of up to $15 million to support the launch of XPerience. A new addition to the Xbio family, it’s a surgical rinse of site infections.

The $15 million placement will comprise $8 million underwritten by Canaccord Genuity. This will be issued without shareholder approval.

A $2 million commitment will come from Next Science’s largest shareholder, Lang Walker. The allocation to Mr Walker is subject to shareholder approval to be voted at an extraordinary general meeting in mid-November.

Lastly, a $5 million share purchase plan will be available to existing shareholders from 25 September. The issue price is $1.20 per share which represents a 9% discount on the last closing price and a 6.25% discount to the five-day volume weighted average price.

Next Science’s managing director Judith Mitchell was delighted at receiving firm support for the placement and said XPerience was a potential game changer.

She said:

In our half year results briefing, I spoke about our prioritisation and focus on the preventative surgical site infection market. With around 110 million surgeries in the world per annum, this is a US$15bn per annum uncontested market space that is expected to double in size by 2030.

Surgical site infections are the leading cause of readmissions to hospitals and are a major cost and burden in health care. XPerience has proven superior performance against MSRA (Golden Staph) and other known pathogens. It is the only antimicrobial product that will be available to surgeons which can be left behind in the surgical site after a surgical close to help prevent infection occurring for over five hours after the surgery.

Next Science will re-lodge its submission to the United States Food and Drug Administration before the end of year. The company said it would move quickly to commercialise should approval be granted.

About the Next Science share price

The Next Science share price has underperformed in the market since the middle of last year, down almost 70%. The Next Science share price hit an all-time low of $1.00 in March 2020 and has slowly regained to $1.32 in the following months.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of June 30th

More reading

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Why the Next Science (ASX:NXS) share price is on watch appeared first on Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!