** Shares of Australia's Control Bionics CBL.AX rise as much as 4.8% to A$0.044, its highest level since February 17

** The medical device manufacturer raises A$2.0 million ($1.27 million) via private placement at an issue price of A$0.045 per share

** Issue price represents a premium of 7.1% to stock's last closing

** Funds raised to help the company "focus on revenue growth in its core operations and the expansion into new high-potential markets" — CBL

** Stock has fallen 26.7% this year, as of 0118 GMT

($1 = 1.5778 Australian dollars)

(Reporting by Roshan Thomas in Bengaluru)

((Roshan.Thomas@thomsonreuters.com))