Download the Prospectus
Website
Pre Money Equity Valuation
$225,000,000
Estimated Close
2020-07-03
Issue Type
IPO
Lead Manager
Bell Potter Securities Ltd, Wilsons Corporate Finance Ltd
Type of Securities
Shares
Market Cap Max
$225,000,000
Key Executives
Jim McLean (INED and Chairman), Brian Ward (CEO and MD), Steven Engle (INED), Philip McCaw NED), John Pinion (INED), John Diddam (INED)
Company Address
Level 1, 357 Military Road Mosman NSW 2088
Exchange
ASX
1st Day VWAP
1.4
Chairman's Letter

Dear Investor,

On behalf of the Directors of Aroa Biosurgery Limited (Aroa), it is my pleasure to invite you
to become a shareholder in Aroa.
Aroa is a New Zealand-based soft tissue regeneration company that is focused on developing,
manufacturing and selling regenerative tissue substitutes for medical conditions where
impaired healing leads to serious consequences for patients. The company commenced
operations in 2008, and has its headquarters and manufacturing facilities located in Auckland,
New Zealand, with additional sales and distribution functions in the United States of America.
Aroa has developed the Endoform® proprietary soft tissue regeneration technology platform,
which is based on many years of research and development by Aroa and is based on the
benefits of applying a unique Extracellular Matrix (ECM) to wounds and soft tissue repair
and reconstruction. Endoform provides a ‘short-cut’ to growing new tissue and an associated
blood supply, supporting recovery from injury or surgery. This technology offers leading
regenerative performance at a disruptive cost compared to other biologic solutions, enabling
more patients to have access to the benefits of regenerative healing. Aroa produces a range
of products that utilise this technology, targeted at chronic wounds, hernia repair, abdominal
wall reconstruction and breast reconstruction. Additionally, it has, and continues to develop,
a pipeline of new products. Aroa’s leading products are covered by a patent portfolio that
includes 10 patents and 25 pending patent applications across 6 patent families, with regulatory
clearance in over 37 countries globally, including US FDA clearance and European CE mark.
Aroa’s first product, Endoform® Natural, for chronic non-healing wounds, was launched in the
United States in 2013 after obtaining U.S. Food & Drug Administration (FDA) clearance and
reimbursement from the Centre for Medicare and Medicaid Services. Since then, Aroa’s products
have been used in over 4 million procedures globally.
Aroa has a history of revenue generation and growth. Aroa expects its revenue growth to
continue once elective surgeries and outpatient treatments return to the levels seen prior
to the COVID-19 pandemic.
Aroa’s initial public offering is the next step for the Company in executing its growth strategy.
The Offer is looking to raise A$45 million, comprising A$30 million of primary capital through
the issue of 40,000,000 new Shares at A$0.75 per Share, with the remaining A$15 million
allowing Existing Shareholders an opportunity to realise part of their long term pre-listing
investment in Aroa. Upon completion of the Offer, new Shareholders are expected to hold
20% of Aroa shares and Existing Shareholders, including Management, will retain 80% of
Aroa shares, of which 83% of those shares will be escrowed for up to 36 months following
the completion of the Offer, with a staged release.
This Prospectus contains important information in relation to the Offer, the financial and
operating performance of Aroa, as well as information relating to its operations and business
strategy. The risk factors that could affect Aroa’s business, financial condition and results of
operations, including macro-economic and market condition risks arising from the ongoing
global COVID-19 pandemic, together with risks associated with an investment in Aroa, and in
shares generally, are contained in Section 5. These risk factors should be considered in detail
before making any investment decision. I encourage you to read the Prospectus carefully
and if you have any queries consult with your accountant, financial adviser, stockbroker,
lawyer or other professional adviser before making any investment decision.
On behalf of my fellow Directors, I look forward to welcoming you as a shareholder of Aroa.
Yours sincerely,
Jim Mclean
Independent Chair of the Board of Directors