Memphasys Ltd (ASX: MEM) has secured $800,000 through a share placement strongly supported by both new and existing sophisticated investors. The Memphasys Felix capital raise success follows a period of accelerating commercial momentum, including CE Mark approval, the commencement of invoiced revenues across multiple international markets, and regulatory submissions lodged in Australia and India.
Memphasys secures $800,000 placement to accelerate Felix commercial rollout
The capital raise represents a significant endorsement of Memphasys’ commercial strategy as the company transitions from development to recurring revenue generation. The placement was completed at $0.005 per share, with 160 million new shares issued to raise $800,000 before costs.
Key placement metrics include:
- $800,000 raised before costs
- 160 million shares issued
- $0.005 per share issue price
- 28.6% discount to last closing price of $0.007
- 22.5% discount to 10-day VWAP of $0.0064
The timing of this capital raise is particularly significant. Memphasys has moved beyond regulatory milestones to secure contracted demand and invoice initial revenues, providing investors with tangible evidence of commercial execution rather than future promises.
How capital raises support early-stage commercial execution
A share placement involves a company issuing new shares to raise funds, typically to sophisticated and institutional investors. For companies at the commercialisation stage, capital raises serve specific purposes: building inventory to meet contracted demand, expanding sales teams, funding regulatory submissions in new markets, and maintaining working capital during the transition to positive cash flow.
Existing shareholders experience dilution as new shares enter the market. However, the trade-off provides the company with financial runway to execute growth plans during the critical period between regulatory approval and revenue scale. For Memphasys, this funding arrives precisely when the company needs to capitalise on commercial momentum.
Use of funds targets four commercial priorities
Proceeds from the placement will be deployed across four key areas directly linked to revenue generation and market access. Each priority connects to near-term commercial execution rather than speculative expansion.
| Priority Area | Purpose | Commercial Link | Status |
|---|---|---|---|
| Direct Selling Expansion | Scale direct selling and clinical engagement activities | Accelerates revenue conversion from contracted customers | Active deployment |
| Manufacturing & Inventory | Support cartridge production for contracted and anticipated demand | Enables fulfilment of existing orders and near-term pipeline | Immediate requirement |
| Regulatory Progression | Progress approvals in Australia and India | Expands addressable market and revenue opportunities | Submissions lodged |
| Working Capital | General corporate purposes during commercialisation phase | Maintains operational continuity as revenue scales | Ongoing |
The allocation reflects a company prioritising execution over expansion. Manufacturing and inventory build receive significant focus, suggesting confidence in near-term order flow.
Manufacturing readiness supports growing demand
Cartridge manufacturing is being scaled to meet both contracted and anticipated demand. The emphasis on contracted demand is particularly significant for investors. This is not speculative inventory build based on market projections. Memphasys has customers committed to purchasing Felix™ cartridges, reducing execution risk associated with the capital deployment.
Manufacturing readiness also positions the company to respond quickly to new opportunities. With CE Mark approval secured and regulatory submissions progressing in additional markets, having inventory available shortens the path from approval to revenue.
Recent milestones underpin investor confidence
The strong support for this placement reflects tangible progress achieved by Memphasys in recent months. The company has moved from regulatory aspiration to commercial execution, providing investors with verifiable evidence of de-risking:
- CE Mark approval secured for the Felix™ System, enabling commercial sales across European markets
- Invoiced revenues commenced across multiple international markets, transitioning from pipeline to cash flow
- Regulatory submissions lodged in Australia and India, expanding addressable market opportunity
- Contracted demand in place, validating commercial model and reducing inventory risk
Dr Lindley Edwards, Chair
“With CE Mark approval secured, initial revenues now being invoiced, contracted demand in place and regulatory submissions lodged in key markets, this funding allows Memphasys to accelerate commercial execution of Felix™ and build momentum as the Company transitions into a recurring revenue phase.”
The sequence matters for investors. The capital raise follows execution, not promises. Memphasys secured regulatory approval, generated initial revenues, and established contracted demand before returning to market for growth capital. This progression reduces the risk profile associated with the placement proceeds.
Placement structure and settlement timeline
The technical structure of the placement provides clarity for investors tracking dilution and share registry changes. Key details include:
- Settlement expected Friday 13 February 2026
- Allotment on or around Monday 16 February 2026
- Lynx Advisors Pty Ltd acted as Lead Manager
- New shares rank equally with existing ordinary shares
The 160 million placement shares will be issued under Memphasys’ existing ASX Listing Rule 7.1 capacity, requiring no shareholder approval. This structure enables rapid deployment of funds during the current commercial push.
Quick settlement allows Memphasys to begin executing against its four funding priorities immediately. With contracted demand in place and regulatory submissions progressing, timing is critical to capitalising on commercial momentum.
For investors, the placement represents a clear trade-off: dilution in exchange for accelerated execution during a period when the company has demonstrated its ability to convert regulatory approvals into revenue. The strong support from both new and existing sophisticated investors suggests confidence in Memphasys’ ability to deliver on its commercial strategy as Felix™ transitions from development asset to revenue-generating product.
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