Insights

Why the Anteris (ASX:AVR) share price backtracked 6% today

Anteris shares slide after news of an impending share dilution.
The post Why the Anteris (ASX:AVR) share price backtracked 6% today appeared first on The Motley Fool Australia. –

The Anteris Technologies Ltd (ASX: AVR) share price took a hit today. This follows the company’s latest announcement of a proposed capital raise.

The company’s shares closed today’s trade at $7.45, down 6.88%.

Anteris initiates capital raising

Anteris, a healthcare company specialising in the design and production of heart valve products, saw its share price fall after it announced a capital raise that will dilute existing shareholder value.

According to its release, Anteris advised it is placing 310,386 new ordinary shares mainly to its top 10 institutional shareholders.

The newly created shares will be offered at an issue price of $7.50 apiece, raising a total of $2.3 million.

The placement price represents a 9% discount to the 5-day volume weighted average price.

The shares will be issued using the company’s existing placement capacity. Under listing rule 7.1, this allows up to 15% of its shares to be issued without shareholder approval.

In addition, participating investors will receive 1 unlisted option for every 2 shares, exercisable at $11.50 a pop.

The options will have a 2-year expiry period, and are subject to shareholder approval if they exceed listing rule 7.1.

Should shareholders vote against the issue of the options, the company will instead hand out a cash payment equivalent to $1.25 per option.

The vote will be held at Anteris’ Annual General Meeting (AGM) in July.

The managers of the placement, Evolution Capital Advisors, will receive $81,739 for facilitating the capital raise.

Furthermore, there will be 50,000 options with the same terms available, pending shareholder approval. Again, should shareholders vote against, Anteris will pay a cash payment of $62,500 ($1.25 per option) to Evolution Capital Advisors.

About the Anteris share price

The Anteris share price is up just over 5% since this time last year.

Anteris shares reached a 52-week high of $13.75 in March, before treading lower due to profit taking and a broader market slump.

Based on today’s price, Anteris has a market capitalisation of roughly $49 million, with only 6.6 million shares on issue.

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.

*Returns as of February 15th 2021

More reading

Why is the Anteris (ASX:AVR) share price surging today?

The post Why the Anteris (ASX:AVR) share price backtracked 6% today appeared first on The Motley Fool Australia.

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
Trade The US Market With ZERO Brokerage* + FREE Access To Trading Ideas & Value Analysis Tools. Click Here!