Anteris Technologies Ltd (AVR.AX) | Analyst: Chris Kallos Update Note
Price: $8.05; Valuation: $23; Market Cap: A$55m
Please find attached full note.
Anteris has released its 2Q2021 results, announcing revenue of $1.6m (largely LeMaitre Vascular), R&D burn of $1.6m and $3.1m cash (excluding this month’s $9m capital raise). On the clinical side, the proof of concept (POC) animal study on the viability of ADAPT® treated conduits in the carotid artery showed no calcification. Anteris had its first successful in vivo demonstration of the ComASUR™ Transfemoral Delivery System.
Investment thesis remains intact with progress across all aspects of the TAVR device development bolstered by positive clinical updates. Details of corporate activity during the quarter included:
- second tranche of the Mercer Street Global Opportunity Fund funding facility raised $1.0m before costs
- new convertible note issue to Mercer raised $2.5m
- share issue to Mercer raised $550,000
- new shares placed to mainly top 10 institutional investors raised $2.3m; investors also received unlisted 2-year options
Details of capital raise after the quarter included: Capital raise of $9m in a placement to sophisticated investors at $8.00/share. Investors will also receive either: (1) 3 unlisted options for every 5 new shares, with a 4-year expiry and exercise price of $10.00, if approved by shareholders; or (2) cash of $1.25 per option. The funds raised will be used largely to develop DurAVR™.
Our valuation of AVR remains unchanged A$23 per share (undiluted), pending the release of 1H21 financials. This uses a risk-adjusted net present value (rNPV) method to discount future cash flows through to FY2030 and incorporates a probability of success adjustment of 32% and, DurAVR™ valve/ComASUR™ delivery kit pricing of US$33,000.
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