Oventus raises $7m, 3rd capital raising for medical device maker in 18 months

SLEEP-DEVICE maker Oventus has taken advantage of a sudden share-price spike to again raise money from investors, in the latest capital injection for the sector.

Oventus are making a mouthguard-like device for troubled sleepers. Photo: Claudia Baxter

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SLEEP-DEVICE maker Oventus has taken advantage of a sudden share-price spike to again raise money from investors, in the latest capital injection of more than $500 million for the life-sciences sector this year.

The Brisbane-based outfit, whose mouthguard-like device is designed to help troubled sleepers such as chainsaw snorers, last week announced it had raised $7.6 million from investors at 55c.

It floated on the stockmarket in July last year after tapping $12 million at 50c and sourced another $7 million at 36c in June this year. Oventus shares had jumped wildly — touching $1 shortly after listing before scraping 31c in August this year, only to receive a rocket in recent weeks after Melbourne-based fund manager Thorny Investments talked up its holding in Oventus.

The money would be used to further develop sales via dentists and sleep clinicians, bring to market two new products and boost staff levels, Oventus said.

“We have been thrilled with the level of interest ... from institutions,” Oventus chairman Mel Bridges said.

Oventus burned through $1.75 million in cash last quarter and had $7.5 million in the bank then. It hopes to be “cash-positive” by 2019.

Bioshares analyst David Blake said Oventus’s three quick capital raisings suggested the company had been undercapitalised, and raised the issue of whether it might seek cash again in another 12 months.

Oventus is also in an “intensely competitive market” for sleep products, Mr Blake said.

According to Bioshares figures, stockmarket listed life-science companies in Australia raised almost $537 million in 2017’s first three quarters.

In 2016, excluding a big $888 million fundraising from Mayne Pharma, the industry sourced $496 million from investors. The amount was $840 million industrywide in 2015.

Mr Blake said investors in 2017 were attracted by some flashy stories, such as medical cannabis, and along with some blue-chip medical device ideas.