Planet Innovation has closed an oversubscribed $9.8 million capital raising.
The funding will enable Pl to accelerate the growth of its business to meet strong demand from international markets for its manufacturing, product development and digital services.
The capital was raised from a combination of institutional funds – including Perennial Value, SG Hiscock and Australian Unity – and sophisticated investors, many of whom have backed PI through previous raises.
PI CEO and co-founder Stuart Elliott said: “The PI Services business has seen strong, continuous growth since launch in 2009, but that growth has really accelerated in 2020. This funding will enable us to invest in our business, including expanding our manufacturing facilities, so we’re able to meet the flood of opportunities coming in from international healthcare, diagnostics and life sciences clients. We’re very happy that investors understand our ambition and see the value in investing in our business now to fuel even greater growth in the future.”
Ryan Sohn, Portfolio Manager at Perennial Value and cornerstone investor in the raise, said: “The PI team has a proven track record of delivering on opportunities in the life sciences and healthcare sectors. There are strong tailwinds for healthcare delivery and I’m excited about the emerging long-term investment opportunities around digital, point-of-care testing and aged care. PI is very well positioned to take advantage of these trends.”
Adrian Di Mattina, Director and Portfolio Manager at SG Hiscock and follow-on PI investor, said: “I’ve been impressed with PI since we first invested five years ago. They’re an Australian-owned, founder-led business that has been consistently winning long-term projects from international clients. If Australia is to grow its advanced manufacturing capacity, this is exactly the sort of business we need to support.”
Victor Windeyer, Portfolio Manager for the Australian Unity Future of Healthcare Fund and first-time PI investor, said: “The Future of Healthcare Fund invests in companies that enhance the health and wellbeing of Australians. Planet Innovation is an exciting company that over the last decade has built remarkable capability to develop and manufacture innovative health technologies here in Melbourne that serve not only Australians but populations across the globe.”
PI Services revenue increased significantly in FY20. Revenue was $66.4 million, a 28 per cent increase on the previous year. EBITDA more than doubled year-on-year, growing 56 per cent to $10.9 million in FY20.
This growth has been fuelled largely by growth for its manufacturing services from both local and international companies. About 100 new jobs have been created in the past year, boosting staff numbers to well over 300 people.
As PI has grown, it has also strengthened its board. Jonathan Ling, former CEO of GUD Holdings and Fletcher Buildings, joined as independent chair this year, while Jim Fox, former CEO of Vision Systems, and Hany Massarany, former CEO of GenMark Diagnostics, both joined as non-executive directors. Together, they bring significant experience in successfully leading growth-focused ASX- and NASDAQ-listed businesses.
Corporate advisory firm Blackpeak Capital acted as financial advisor to the raise, working with joint lead manager, Canaccord Genuity.
