UNI - Unilife Medical Solutions

we will see a very positive response to a capital infusion, at any sp, ultimately. It may take a bit of time for investors to digest the information, come to the conclusion that this is a strong positive infusion of capital from serious investors who understand the potential Of UNI, and jump on the band wagon . I for one am excited.

suspension extended someone fouled up re nsw public holiday. Would suggest that one of the participants is domiciled in NSW

So... I'm a little disappointed by the latest capital raising. External investors are given access at 85c plus they get access to a rather large quantity of "free" options. While the existing shareholders get access to only 25% of the shares going on offer and at what amounts to higher price (when taking into account that ordinary shareholders are not eligible for the "free" options).

Seems to me that ordinary shareholders are getting a raw deal. I think UNI could have easily scaled back on the Placement, reduced the SPP price below the placement price (given we are not eligible for options) and offered more shares via the SPP.

I for one will be voting against the portion of the placement that exceeds the 15% placement limit.

Thoughts?

**I hold shares in Unilife**

Could someone please inform me if existing shareholders are required to have a minimum number of shares to be eligible for the proposed SPP.
I am currently holding shares
Cheers

There is nothing in the spp to suggest that a minimum share holding is required to participate however there is a possibility of not getting the maximum if oversubscibed the directors seem to have left open the option of either exceeding the the 10 million if enough offers are made or cutting it off I do not know why they have done this as it seems to indicate some uncertainty re how much money they want or is it that they will only go above ten million if the interest is only slightly more than that. Then again they might decide to only go above ten million if the amount is considerably more so that they can fund projects now that they plan further down the track

Macky:
why wouldnt the company offer a "special" deal to an investor/s willing to put up 30 million dollars? how can Uni capture that capital without some type of incentive? I concur that we share holders could have been offered more, especially those of us who have held stock for a long time.
while others sell, i will be buying.
Dont lose site of the intended use for this capital, what it means in the LONG run to the company and ,therefore, the stock price.
this will be very posiive in the coming weeks.

( i own shares, obviously!)

While the cap raising favours the institutional investor over the retail investor all in all I am happy with it. As a relatively smaller holder the chance to get up to 15k worth @ 85c works for me and I intend to send off for the full amount, if I can scrape 15k together in time

Unilife is also pleased to announce the terms of an offer to eligible shareholders of the Company under a Share Purchase Plan (SPP) to raise A$10 million (or such greater amount as the directors determine subject to the limits in the ASX Listing Rules).
The SPP will provide eligible shareholders of Unilife with an opportunity to purchase shares in the Company without incurring brokerage or other transaction costs and at the same issue price as the Placement.
Under the SPP, each Unilife shareholder with a registered address in Australia and New Zealand who holds shares at the record date of 9 October 2009 will be entitled to acquire up to A$15,000 worth of new fully paid ordinary shares in the Company (SPP Shares) which will rank equally in all respects with the existing fully paid ordinary shares. The SPP Shares will be offered at an issue
price of A$0.85 per share. ASIC regulations do not permit the Company to issue unlisted options under a SPP.

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As was discussed elsewhere; At June 30 there were about 6800 individual holders so rounding up for new holders to around 7000 if 70% take up the offer thats 4900. With A$10 million on offer that amounts to roughly 2k each scaled back.

However, the Board retains the discretion to issue additional SPP
Shares to satisfy all or part of such applications in excess of A$10 million, subject to a maximum number of SPP Shares to be issued being equal to 30% of the issued share capital of the Company at the date of issue (which is the limit imposed by the ASX Listing Rules).

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If they were to increase the offer and issue additional shares to the maximum of 30% of issued capital that equates to around A$66 million total or around 13k each(assuming holders applied for the full 15k, which I doubt).

These are all rough figures obviously DYOR.

The effect of issuing more shares ,may have worked its way through the sp With the price for the last two days finishing above $1.00 I would like it to be true however only time will tell . In the meantime Sanofi Aventis is due to give its extra orders for RTF syringes in the near future with UNI having one month to respond I can not imagine it would take them that long to respond . This will allow the company to follow up inquiries from other pharmas as they will know the amount of spare production on the first assemby line . It is quite possible that some of the funds obtained from the share issue will be used to accelerate the building of more assembly lines to fullfill demand

Hey pacestick. It's not quite possible they will use the funds from the spp and placement to accelerate production, it's a given.

Purpose of the SPP Offer
Unilife intends to use the proceeds raised from the SPP in the expansion of its operational
capabilities and facility requirements in the United States, the continued industrialisation of the
Unilife Ready-to-Fill Syringe and for the commercialisation of additional new pipeline products the
Company intends to develop. The Board believes the chosen capital strategy involving the
Placement and the SPP achieves an appropriate capital structure and gives all of Unilife's
shareholders an opportunity to participate in the equity raising.
At the commercial level, the Board believes that the improvement of our capital position and
available cash reserves should make us a stronger candidate to secure institutional support in the
open market, particularly after the NASDAQ listing, and help us withstand any future potential
downturn that may occur in the global economy.
At the operational level, we intend to utilise our stronger cash position to help complete the
industrialisation, production and supply of our Unilife Ready-to-Fill Syringe and Unitract 1mL
Syringes to pharmaceutical customers and other healthcare industry leaders. Anticipated
pharmaceutical demand for the Unilife Ready-to-Fill Syringe will, in particular, require us to
finance a number of operational matters including the purchase of additional manufacturing
equipment and the development of a new production facility within Pennsylvania.
If we are to meet the accelerated target dates for delivery of these products, we must make
financial commitments and expend the funds for the new equipment and plant facilities in the very
near future. Therefore, the Board considered it prudent to move the planned capital rising forward
from the original concept of mid-2010 after the NASDAQ listing. In addition, we consider that
having a strong Balance Sheet with solid cash reserves will help Unilife management negotiate
new agreements with major pharmaceutical companies from a position of strength.
The capital raising should also help to fast-track the commercialisation of additional pipeline
products that we are in the process of developing, but which have moved more slowly while we
focused our available financial and personnel resources on our primary products. A number of
these new products may have significant commercial potential, and we will now be able to bring
them to market at a faster pace. We believe this capital raise will be sufficient to finance our
needs well into the foreseeable future. By completing a significant capital raising at this time,
management will now be able to focus their efforts on building Unilife’s business rather than in a
time consuming search for capital.

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Once the sp steadies, which it seems to have, we will be back on track and heading north again imho. Anyone who does not take up the spp is either strapped for cash or doesn't know a bargain when they see one. I'll be waiting till late October to see how the sp holds up pre spp but intend to apply for Offer D 17,647 Shares Total amount payable @ A$0.85 per share A$14,999.95 in the hope I get the full amount, doubtful but I would kick myself if I applied for less and missed out. Good luck holders!

yes lee tv I picked up the announcement just after my last post. I am also wondering if this means that with accelerated production we will see targets set for 2016 i.e. 20% of the worlds RTF production brought forward to about 2012/13 after all once you have built one production line you know what can go wrong and only have to duplicate your original . If this so the sp on this company is really heading to the stratosphere based as it will be on hard production figures and zero hype

Has everyone received their offer documents yet? I haven't received mine and don't want to miss out. I agree the opportunity to buy more at 85c is one I don't want to miss.

Mumbank said:

Has everyone received their offer documents yet? I haven't received mine and don't want to miss out. I agree the opportunity to buy more at 85c is one I don't want to miss.

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The spp documents were due to be dispatched on the 14th Oct so should be in todays mail. My mailman hasn't been as yet, just checked.

Mailman just arrived and no spp documents as yet(I'm in Perth btw).

I am expecting mine today I am in newcastle This is the last oppurtunity to get into this company at such a low price

Did not receive my letter today, hopefully will turn up early next week. I will be taking up offer B only because i dont have the funds to take up the maximum offer.
Can i still be cut back if the offer is over subscribed and i only apply for offer B ?
Cheers Mark

JBR said:

Did not receive my letter today, hopefully will turn up early next week. I will be taking up offer B only because i dont have the funds to take up the maximum offer.
Can i still be cut back if the offer is over subscribed and i only apply for offer B ?
Cheers Mark

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If subscriptions under the SPP exceed A$10 million you will get roughly 2k worth regardless of which option you apply for, except option A obviously as it's only $1275 worth. That's assuming the figure I posted previously on the approx. numbers of applicants(4900) is more or less correct of course.

Still no papers here btw.

Lee TV where do you get the 2000 shares limit from I can not find it in the document and if they do decide to scale back might they not do it by a set percentage anyway so that if the spp is oversubscribed by say 10% you will get 10% less shares . It should be also noted that they have left open the option of taking more if it is oversubscribed

pacestick said:

Lee TV where do you get the 2000 shares limit from I can not find it in the document and if they do decide to scale back might they not do it by a set percentage anyway so that if the spp is oversubscribed by say 10% you will get 10% less shares . It should be also noted that they have left open the option of taking more if it is oversubscribed

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Not 2000 share limit $2,000 worth. In my previous post/s I though I explained in detail why we will only get roughly that amount if they scale it back due to over subscription, imo.

Based on around 70% of the individual holders, which is roughly 4900 applicants, scaling it back per applicant I divided A$10m by 4900 for A$2040 each applicant or 2400 shares @ 85c(rough figures obviously as noted previously.

And I already noted they have the option to issue additional SPP shares in the same post if you read it here it is again...

However, the Board retains the discretion to issue additional SPP
Shares to satisfy all or part of such applications in excess of A$10 million, subject to a maximum number of SPP Shares to be issued being equal to 30% of the issued share capital of the Company at the date of issue (which is the limit imposed by the ASX Listing Rules).

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All imho of course I'm all ears on what you think we will get.

The big question is if the if the spp is scaled back how will it be done? Will it be pro rata or divided equally?

I figure if around 4000 holders apply for the spp and 1000 apply for each of the (4) offers if they do cap it at A$10 million and scale it back pro rata:

Offer A get roughly 480 shares or $408.00 worth each
Offer B get roughly 1920 shares or $1632.00 worth each
Offer C get roughly 3840 shares or $3264.00 worth each
Offer D get roughly 5647 shares or $4800.00 worth each

Using the same scenario and dividing the A$10 million equally:

Offer A get exactly 1500 shares or $1275 worth each
Offer B, C, D get 3421 shares each or $2908 worth each

If they do increase the offer, due to over subscription, by say double then double the figures.

Medical Device Manufacturer Expands In Pennsylvania, 250 New Jobs For York County
Source: Governor of Pennsylvania
Posted on: 26th October 2009

Governor Edward G. Rendell announced today that nearly 250 new jobs will soon be coming to York County now that state investments have helped to convince a global manufacturing company to expand there.

Unilife Medical Solutions, a safety medical device maker, announced in April that it was relocating its global headquarters from Australia to a leased facility in Lewisberry, but projected demand for its products from pharmaceutical companies and other healthcare industry leaders has compelled the company to transfer its operations to a larger facility in York County.

“The expansion of Unilife’s global headquarters in York County is great news for Pennsylvania, and the company’s decision to locate its primary manufacturing operations here is a huge testament to the York County workforce,” said Governor Rendell. “Major projects like this don’t happen by accident, and Unilife’s relocation and expansion serves as the latest proof of the success of our economic development efforts.”

Unilife will build a new facility at a yet-to-be-determined site in York County to serve as its corporate headquarters and house its primary manufacturing operations.

Unilife manufactures healthcare safety products, like its pre-filled syringe, which can help protect people from needle-stick injuries and other unsafe injection practices.

The multimillion dollar project will create 241 new jobs by the end of 2012 and it will retain 87 existing employees who will move from its Lewisberry facility to the new building, upon completion.

The Governor said the commonwealth’s involvement with Unilife dates back more than four years, when an Australian trade representative from the Department of Community and Economic Development’s international business office first met with company officials.

“As an emerging global leader for innovative safety medical devices, we are committed to helping enhance the international credentials of Pennsylvania as a place for pharmaceutical and healthcare companies to do business,” said Alan Shortall, Unilife Medical Solutions CEO. “We are very pleased that the Commonwealth of Pennsylvania has chosen to offer Unilife this significant funding package, and we are fortunate to be working with a government that displays the leadership and forward-thinking needed to support companies such as Unilife.”

Unilife Medical Solutions Limited is an Australian publicly listed designer, manufacturer and supplier of innovative safety medical devices. Core areas of its business activity are the pharmaceutical market for pre-filled syringes, the healthcare market for sharps safety devices, and medical device contract manufacturing. To support its U.S. expansion plans, the company is preparing to undertake a listing on NASDAQ.

Unilife has built a significant business relationship with sanofi-aventis to support the industrialization of its Unilife pre-filled syringe. Pilot production of the syringe began at the Lewisberry facility last year; full commercial production will occur at the company’s new facility in York County. Unilife will also manufacture the Unitract 1mL range of syringes at the facility for use in healthcare facilities and by people with diabetes.

The project was coordinated by the Governor’s Action Team, economic development professionals who serve as a single point-of-contact for businesses that are considering locating or expanding in the state.

Pennsylvania is providing the company with a $5.2 million funding package that includes a $500,000 opportunity grant, a $2 million loan from the Pennsylvania Industrial Development Authority, a $2 million grant through either the Redevelopment Assistance Capital Program or the Infrastructure Facilities Improvement Program, $200,000 in job training assistance and $482,000 in job creation tax credits.

Since Governor Rendell took office in 2003, GAT has successfully completed 1,179 projects, resulting in commitments to create 125,521 new jobs and retain 297,425 existing positions. The commonwealth has offered more than $2.2 billion in assistance for these projects, which will leverage more than $16 billion in additional investment.

For more information about Unilife Medical Solutions, visit www.unilife.com

For information on the Governor’s Action Team, visit www.NewPA.com or call 1-866-466-3972.

Unilife To Market Ready-to-Fill Syringes Under Unifill Brand
Published: 27-Oct-2009

Has commenced the filing of international trademarks for Unifill
The product previously referred to on a pre-commercial basis as the Unilife Ready-to-Fill Syringe (or Unilife Prefilled Syringe) will henceforth be marketed and referred to as the Unifill syringe. The company also intends to market other products under the Unifill brand name that are currently in its development pipeline and targeted for supply to pharmaceutical companies.

Products intended to be marketed under the Unifill brand will be custom-designed for compatibility with the drug validation, dose filling and packaging systems of pharmaceutical manufacturers, and promote convenient, intuitive use by healthcare workers or patients who selfadminister prescription medication.

The Unifill syringe currently being industrialised by Unilife in conjunction with its pharmaceutical partner is considered to be the world's first ready-to-fill syringe with automatic (passive) safety features that are fully integrated within the glass barrel. The product is designed to be compatible with the standard drug filling and packaging systems of its pharmaceutical customers, and allow operators to control the rate of passive needle retraction directly from the body into the barrel of the syringe to protect those at risk of needlestick injury.

Unilife has previously filed and secured international trademarks for its Unitract brand, under which the company currently manufacturers and markets its proprietary range of 1ml safety syringes. Unitract safety syringes feature a plastic barrel and are designed for use within healthcare facilities and by patients where prescription medication must be drawn up into the barrel from a vial or ampoule immediately prior to the injection. Unilife also has other products in its development pipeline that it intends to commercialize and market under the Unitract brand.

Alan Shortall, chief executive officer of Unilife, said the filing of international trademarks for the Unifill brand was an important milestone in the company's evolution. "We expect that Unifill will become a premier global brand within the pharmaceutical industry for best-in-class ready-to-fill safety syringes.

"The launch of our Unifill at the Parenteral Drug Association (PDA) Universe of Pre-filled Syringes and Injection Devices Conference and Exhibition in Venice, Italy this week sends a clear message to pharmaceutical companies and other industry stakeholders that we are committed to introducing a range of complementary technologies that will address the needs of our customers."