NorthStar sees good impact in Control Bionics, invests $525k

NorthStar Impact funds invests $525k in medical devices company Control Bionics
NorthStar is only Aussie equities impact fund certified by Responsible Investment Association Australasia
Control Bionics is focused on helping patients with communication challenges due to conditions like MND/ALS.

Special Report: NorthStar Impact Control Bionics (ASX:CBL) funds is backing Control Bionics through a $525k investment in the medical devices company focused on helping patients with communication challenges due to neurological conditions like Motor Neurone Disease/Amyotrophic Lateral Sclerosis (MND/ALS).

Control Bionics (ASX:CBL) says NorthStar Impact Funds is the only Australian equities impact fund certified by the Responsible Investment Association Australasia (RIAA).

The investment by NorthStar in CBL was through a strategic placement of 10 million new fully paid ordinary shares at 5.25 cents/shares, undertaken fully by the fund.

CBL says the issue price represents a 4.5% discount to the closing price of CBL shares on July 30 and a 0.1% discount to the 15-day VWAP.

Commitment to positive impact companies

Based in Sydney and founded in 2017, NorthStar has ~$100m AUM and continues to deploy capital to companies delivering positive social and environmental impacts.

NorthStar is also a specialist external listed equities manager for the $120bn super fund UniSuper.

NorthStar’s founder and chief investment officer Kerry Series co-founded Perennial Investment Partners and was previously an investment director for HSBC Asset management.

He is also a director and part-owner of the Impact Investment Summit Asia Pacific, which connects positive impact companies to institutional investors, advisors, foundations, family offices, and government organisations.

CBL says Lynx Advisors is the lead manager to the placement and will receive a fee of 6% of the total amount raised.

Subject to approval at the 2024 AGM, Lynx will also receive 250,000 options exercisable at 10 cents/share with an expiry date of three years after the issue.

The funds provided to CBL will be used for general working capital purposes.

Opening up communication

CBL focuses on helping patients with communication challenges due to conditions such as MND/ALS and operates in North America, Australia, Singapore, and Japan.

The company’s core patented NeuroNode technology is a wireless, wearable device that detects minute signals from the brain to skeletal muscles capturing electromyography (EMG) output.

CBL says this output is then sent wirelessly via NeuroNode to a personal computer, enabling speech and other computer-controlled functions such as email and texting.

The company’s technology integrates technology enabling the eye gaze to move a cursor on a computer screen, while the NeuroNode acts as a mouse button.

CBL has recently expanded its offering to include mobility solutions with the launch of DROVE, which has now been approved by the Therapeutic Goods Administration (TGA) in Australia.

The autonomous wheelchair module enables powered wheelchair users to operate their wheelchairs independently in their own homes.

CLB is currently commercialising its most recent tech advancement the NeuroStrip. The wearable, innovative physiological measurement tool provides the business with the opportunity to enter new markets such as health diagnostics, sports performance and rehabilitation.

CBL launched NeuroStrip at the AI for Good Global Summit on May 31.

Welcomed NorthStar strategic investment

CBL’s CEO and managing director Jeremy Steele has welcomed the investment by NorthStar as providing future opportunities for the company.

“In many ways, we see this investment by NorthStar as a strategic investment and we expect our partnership will extend beyond the provision of capital,” he says.

“We are looking forward to working with Kerry and the NorthStar team to accelerate the growth of Control Bionics.”

This article was developed in collaboration with Control Bionics, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.