RNO: Rhinomed Completes Successful Capital Raise And Cornerstone Investment

RHINOMED COMPLETES SUCCESSFUL CAPITAL RAISE AND CORNERSTONE INVESTMENT KEY HIGHLIGHTS:

• Funds received for AUD$2.1 million placement at 1.8 cents
• North American based cornerstone investor increases stake to 17.7%

March 15, 2017. Melbourne, Australia.

Australian respiratory technology company Rhinomed Limited (ASX:RNO) is pleased to advise that it has undertaken a AUD$2.1million private placement. The placement was made to two US based sophisticated investor groups under ASX Listing rule 7.1 and the company's current 15% capacity.

105,135,000 shares will be issued to Mr Whitney George, a current investor, who has now increased his stake to 17.73% of the company. A further 17,000,000 shares will be issued to one other US based investor group, in both cases subject to lodgement of a cleansing prospectus by the Company to facilitate secondary trading of shares issued pursuant to the placement.

The proceeds of the private placement will be used to drive the Company's strategy of expanding its retail distribution footprint and driving key strategic initiatives.

The issue price of the placement is 1.8 cents per share, which represents a 6% premium to Rhinomed's closing share price of 1.7 cents on the 14th of March and a 16% premium to Rhinomed's 20 day VWAP. All new placement shares will rank equally with the existing shares.

Chairman Ron Dewhurst said, "We are delighted with the strong support from our cornerstone investor. Rhinomed is steadily building a compelling proposition and an exciting brand presence in the USA. We are pleased to receive this strong vote of confidence in the company and its strategy."

The Directors advise that the completion of the placement is conditional on lodgement of the prospectus with ASIC. The company will lodge the cleansing prospectus with ASIC shortly.

For further information contact: Michael Johnson, CEO & Director

[phone]

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About Rhinomed Limited (ASX: RNO)

Rhinomed Limited is a Melbourne based technology firm with a focus on nasal, respiratory and breathing management technologies. The company is seeking to monetise applications of its technology portfolio in the Sport, Sleep, Wellbeing and Drug Delivery markets. For more information go to www.rhinomed.global