Press Release - 21 September 2004
Sunshine Heart IPO closes oversubscribed
Australia, Sydney. Tuesday 21 September 2004. Heart device specialist Sunshine Heart, Inc.
(Sunshine Heart) today announced the successful close of the Company’s Initial Pubic Offer to raise
$15 million. The Offer received good support from both institutional and retail investors to close
oversubscribed.
In the interest of maintaining an orderly after market, the Directors have determined to allocate $15
million (the Underwritten amount). As a result, all institutional allocations and all broker firm applications have been accepted in full. General public applications have been accepted in part.
Sunshine Heart’s IPO was fully underwritten by Wilson HTM Corporate Finance and has raised funds
to assist in further development of its innovative heart assist device called C-Pulse. The expected ASX
listing date of the company is 28 September 2004. The date for allotments is 21 September 2004, the
despatch of CHESS Certificates the 23 September 2004 and the despatch of refund cheques the 24
September 2004.
Sunshine Heart has developed a cardiac assist device called the C-Pulse, designed specifically for
treatment of patients with moderate to severe heart failure. Heart failure is a condition characterised by
a reduced pumping capacity of the heart, and is manifest by a range of symptoms including shortness
of breath, limitation of exercise, dizziness and fluid retention. People with moderate to severe heart
failure have a poor quality of life and a higher mortality rate as compared to people in mild heart failure.
It is estimated that 1.8 million patients in the US alone fall into this category, and the Company
estimates that of these patients, 1 million are candidates for the C-Pulse. This constitutes a large and
under-served market, which provides Sunshine Heart with a significant business opportunity.
Sunshine Heart CEO, Donald Rohrbaugh said: "The interest in this IPO is a testament to Sunshine
Heart's innovative product, the large unmet clinical need, and the strength of the technology. We
believe that the C-Pulse will provide a better treatment option for patients needing a heart assist blood
pump, at a more attractive cost to the healthcare system".
Current treatments for moderate to severe heart failure include drug therapy, however patients in these
late stages of heart failure often need further assistance to improve well-being and reduce symptoms.
Bi-ventricular pacemakers are suitable for about one quarter to one third of these patients for
assistance with electrical disorders in the heart. Heart transplants are extremely limited in supply.
Mechanical heart assist blood pumps, known as left ventricular assist devices (LVADs) have been
developed to address this need, but are limited to use in the sickest patients only (those with severe
heart failure), because of the cost, complexity and potential complications of these devices.
Sunshine Heart has completed short and long term animal trials and an intra-operative human trial with
the C-Pulse. In summary these results have provided initial evidence of the efficacy of the design, and
the safety, of the C-Pulse. Apart from the costs of the Offer, all proceeds from the Offer will be used to
advance the commercial development of C-Pulse, with three quarters of the proceeds used to fund
further short and long-term human clinical trials in New Zealand this year and in Germany next year
and to develop an innovative wearable driver to power the device. The remaining one quarter of funds
will be used to continue to build intellectual property protection around the C-Pulse, as well as support regulatory and quality operations and pay general and administrative expenses. Additional funding will
be required to complete the German and New Zealand trials and to commence US clinical trials.
The shares issued in the ASX IPO have not been registered under the Securities Act of 1933 (the "US
Securities Act") and may not be offered, sold or delivered in the United States, or to, or for the account or benefit of, any US Person, as such term is defined in Regulation S of the US Securities Act. In
addition, hedging transactions with regard to the shares may not be conducted unless in accordance
with the US Securities Act.
For further information, please contact:
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