The funds will be used primarily to support the preparation of the company's CardioCel® heart patch prior to its imminent launch.
Indicating just how close Allied is to commercialisation of CardioCel®, the patch was used for the first time outside of clinical trials to surgically repair congenital heart defects in infants in mid-October.
The company expects CardioCel® will receive marketing approval in the first half of 2013 in at least one global jurisdiction.
Share purchase plan
Allied is also offering existing shareholders the opportunity to subscribe for up to A$15,000 worth of shares at the same price as the placement, which was done at $0.02 per share.
RBS Morgans is the Lead Manager for the placement and share purchase plan.
Substantial increase in revenue
Allied has existing and growing revenue that is forecast to be over $7 million this financial year, with CardioCel® expected to significantly increase global revenue.
The company anticipates it will also submit CardioCel®'s 510K marketing approval application with the U.S. Food and Drug Administration in the March quarter of 2013.
Lee Rodne, managing director, commented: "CardioCel® is on the cusp of global approvals so we need to ensure we maximise the impact it has in the market with extensive pre-launch preparation of the product.
"The approval of CardioCel® will be a major step for the company in building a sustainable, integrated global healthcare company in 2013.
"The market potential for CardioCel® is substantial. If the initial launch of CardioCel® is received well, our revenue will increase significantly over the next 12 to 24 months."
Allied is seeking initial approval for the use of CardioCel® in the repair and reconstruction of congenital heart disease defects in infants and children.
Once CardioCel® receives its initial approval, Allied will aim to expand the applications for the product in additional cardiovascular areas, such as adult heart valve repairs and reconstructions.
Studies have shown CardioCel® has unique properties which make it suitable for use by surgeons as a regenerative cardiac repair tissue patch, as well as delivering key benefits to patients compared to existing surgical approaches.
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