An American company that makes devices which help people with sleep-related breathing problems is seeking to raise $40 million and list on the Australian Securities Exchange (ASX).
Ventus Medical Inc, which has its headquarters in San Jose in California, has developed non-invasive devices for the treatment of sleep-disordered breathing, which includes snoring and obstructive sleep apnoea (OSA).
OSA is often associated with more serious issues such as diabetes, obesity, heart disease and stroke.
Ventus intends to raise the $40 million in a public offer of securities and a private placement.
It will offer up to 86 million CHESS Depository Interests (CDIs) at 50 cents per CDI to investors in Australia, New Zealand, Hong Kong, Singapore, and the United Kingdom; and to US investors in a private placement.
Each CDI will equal one sixth of an underlying share.
The company will use the proceeds to fund commercial expansion, increase manufacturing capacity, and support international commercialisation activities.
Ventus chief executive Peter Wyles said Australia was an important market for Ventus.
"The public offer gives investors the opportunity to partake in a compelling opportunity and join us as we enter a new phase of growth," he said on Monday.
Mr Wyles said Australian investors were well educated in the area of sleep disorders, with US-based sleep disorder equipment supplier ResMed Inc already listed on the ASX.
He said Ventus was likely to attract investors who understood the opportunities of ResMed in its early days.
Ventus's lead product, Provent Sleep Apnoea Therapy, consists of two small, single-use devices that are applied to each nostril just prior to sleep.
The product uses the patient's own breathing to keep the airway open during sleep, reducing the airway obstruction that causes sleep apnoea and snoring.
Ventus said the treatment was effective, simple, comfortable and portable and addressed concerns surrounding patient compliance with existing treatments for OSA.
Ventus plans to launch its snoring therapy to US consumers in the second half of 2012.
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