Respiri - New funding to support commercial traction

Respiri has announced a A$1.5m capital raise through a security purchase plan (SPP) to existing shareholders (up to 30m shares to be issued at A$0.05/share). We note that the SPP is fully underwritten with the new shares expected to enter circulation on 9 February 2023. We expect this cash injection to further support Respiri’s commercialization plans in the US, which have resulted in notable client wins over the past quarter. Six new accounts were signed in H2 CY22 and, most recently, the Arkansas Heart Hospital (AHH; deal signed in late November) commenced patient enrolment in the wheezo programme for cardiovascular patients, suffering from chronic obstructive pulmonary disease (COPD). We expect initial patient feedback (first data readout anticipated in early 2023) and remote patient monitoring (RPM) reimbursement to underpin Respiri’s longer-term growth potential.