PALO ALTO, Calif., June 8, 2016 /PRNewswire/ — AirXpanders Inc. (ASX: AXP) (AirXpanders or Company) a medical device company focused on the design, manufacture, sale and distribution of the AeroForm® tissue expander, today announces that it has received commitments from sophisticated and professional investors to subscribe for 26,315,790 CHESS Depositary Interests (CDIs) (representing 8,771,930 shares of Class A Common Stock) at A$0.76 per CDI to raise A$20 Million (Placement). The Placement was significantly oversubscribed, with strong demand from existing and new institutional funds, both domestically and overseas.

The funds raised from the Placement will be primarily used by the Company for:

• Market growth of AeroForm® in Australia;
• Sales and marketing investment in preparation for U.S. launch of Aeroform®, targeted for 1QCY2017 (subject to receipt of FDA clearance);
• Completion of commercial manufacturing transfer to Costa Rica; and
• General working capital

Canaccord Genuity (Australia) Limited acted as the sole lead manager to the Placement.

“This is an exciting time for AirXpanders as we continue to successfully execute our Australian growth strategy while investing in preparation for the U.S. launch of our AeroForm technology,” said Scott Dodson, CEO of AirXpanders. “We welcome the strong support from both existing and new institutional shareholders, who have shown a strong vote of confidence in AirXpanders.”

“This additional capital strengthens our balance sheet as we prepare for commercial launch in the U.S., pending receipt of FDA clearance, and will help us complete the automation and transfer of our manufacturing to Costa Rica and continue our growth in the Australian market, where we have achieved tremendous success since launching in July last year,” said Mr Dodson.

The CDIs under the Placement will be issued on the same terms as, and will rank equally with, the existing CDIs of AirXpanders. The Placement does not require stockholder approval and settlement is expected to take place on Tuesday, 14 June 2016. The new CDIs are expected to commence trading on ASX on Wednesday, 15 June 2016.

“This is an exciting time for AirXpanders as we continue to successfully execute our Australian growth strategy while investing in preparation for the U.S. launch of our AeroForm technology,” said Scott Dodson, CEO of AirXpanders. “We welcome the strong support from both existing and new institutional shareholders, who have shown a strong vote of confidence in AirXpanders.”

“This additional capital strengthens our balance sheet as we prepare for commercial launch in the U.S., pending receipt of FDA clearance, and will help us complete the automation and transfer of our manufacturing to Costa Rica and continue our growth in the Australian market, where we have achieved tremendous success since launching in July last year,” said Mr Dodson.

About AirXpanders:

Founded in 2005, AirXpanders is a medical devices company focused on the design, manufacture, sale and distribution of its AeroForm® tissue expander used in patients undergoing breast reconstruction following mastectomy. It considers that its AeroForm® device is the best innovation in expander technology in 50 years. AeroForm® uses controlled delivery of small amounts of gas (CO2) to achieve tissue expansion prior to the placement of a permanent breast implant. AeroForm® successfully eliminates the need for needle-based expansion required for traditional saline tissue expanders and provides a faster, less painful and less stressful breast reconstruction journey. The Company has CE Mark and TGA approval for AeroForm® and is fully reimbursed under Australian Medicare. To date, AeroForm® has been successfully implanted in over 1000 patients worldwide. AirXpanders devices are not cleared or approved for use in the United States and are considered for investigational use only. AirXpanders is cleared for commercialization in Europe and in Australia.