News: SomnoMed Limited directors acquire shares through placement

SomnoMed Limited (ASX:SOM) directors have increased their shareholdings in the company through participation in its $5.55 million share placement priced at $1.50 per share that was announced in July.

The shares were issued to the directors following the receipt of shareholder approval in November.

Shares in SomnoMed are currently trading at $2.55.

Chairman Dr. Peter Neustadt acquired 200,000 shares for $300,000, bringing his total holding up to 3,702,023 shares.

Non-executive director Lee Ausburn acquired 50,000 shares for $75,000 while Robert Scherini bought 20,000 shares for $30,000.

Ausburn now has 73,999 shares while Scherini has 30,000 shares.

At the beginning of FY2015, the company announced the share placement and share purchase plan to raise up to $7.05 million.

Proceeds will be used to double its production capacity, phase in digital equipment in the production process and fund working capital for growing operations.

Highlighting the interest in the company and growing sales of its sleep apnea products, the share purchase plan closed heavily oversubscribed with shareholders applying for $6.1 million worth of shares, well above the maximum of $1.5 million available.

In November, SomnoMed reached the benchmark of 200,000 non-invasive medical devices fitted to patients to treat obstructive sleep apnoea since start of its operations in 2004.

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