MN Co. Launches IPO, Will Trade on Australian Exchange
Eden Prairie-based medical device firm Osprey Medical intends to go public in Australia. It launched an initial public offering (IPO) Thursday and hopes to start trading on the Australian Securities Exchange (ASX) by mid-April.
The company is offering 50 million Chess Depository Interests (CDIs) for about 42 cents each and hopes to raise in Australian dollars an amount that translates to roughly $21.2 million in U.S. dollars. CDIs are a type of security used by the ASX to allow international companies to trade on the local market.
Osprey Medical developed a device called the Cincor System that helps prevent kidney damage during heart procedures such as angioplasty and stenting. The technology was developed at the Baker IDI Heart and Diabetes Institute in Melbourne, Australia.
Osprey spokesman Doug Schoenberg told Twin Cities Business that 100 percent of the company's funding so far has come from venture capital firms in Australia.
“It seemed like a natural progression for us to start trading on the Australian market,” Schoenberg said. He added that the company doesn't have plans to trade on a U.S. exchange in the near future.
Osprey was founded in 2005 and currently has 10 employees. Its device has received regulatory approval to be sold in Europe, and the company has planned a commercial rollout there later this year.
Schoenberg said most of the funds raised through the IPO will be used to conduct a clinical trial in the United States, which is also planned to start this year. The company hopes to have regulatory approval to sell its device in the United States by 2014.
Osprey Medical CEO and President Mike McCormick said in a statement that the company's device can reduce risk of kidney damage during heart procedures by 50 percent.
“Therefore we believe that our product can significantly improve patient quality of life and also lead to significant savings within the health system,” McCormick added.
The company's backers to date have included Australian firms CM Capital Investments and Brandon Capital Partners.