Australia's Mesoblast to buy USA's Angioblast, raising A$37 million to fund deal

Australian regenerative medicine company Mesoblast says that it will acquire its US associate company, Angioblast Systems. Additionally, Mesoblast announced it has completed a capital raising of A$37 million ($30 million) to fund the purchase and advance operations of the expanded Mesoblast Group. These funds comprise A$24 million invested immediately and A$13 million committed subject to both shareholder approval and completion of the acquisition offer.

Mesoblast chairman Brian Jamieson said: "We are delighted to bring the commercial rights to the patented adult stem cell technology platform under one umbrella. With Mesoblast moving to 100% ownership of Angioblast, Mesoblast shareholders will derive much greater potential benefit from product commercialisation, and from the broader strategic partnerships or collaborations Mesoblast will now be able to conclude."

The capital was raised from UK institutional and sophisticated investors, as well as from new and existing Australian investors, at a share price of A$1.70, representing a 12% discount to the company's closing price on May 3 2010.