TruScreen seeks $1 million from shareholders

The company raised $3.27 million from institutional and eligible shareholders last month.

NZAX-listed TruScreen [NZX: TRU] is looking to raise up to $1 million from investors in a share purchase plan after the cervical cancer screening system's private placement came up short on its upper target of $4 million.

The Auckland-based company raised $3.27 million from institutional and eligible shareholders last month, short of its $4 million upper target but above its $3 million minimum. It will now offer existing shareholders up to 60,000 shares each at 25c each, a half cent discount to the stock's current price and the same price at which it offered shares in the placement.

The company plans to ramp up manufacturing of its single-use sensors as it targets China, where it recently won regulatory approval from the China Food and Drug Administration to service the world's most populous nation with its cervical cancer screening system. TruScreen has entered into a joint initiative with the China Doctors Association and its principal Chinese distributor, Beijing SiweiXiangtai Tech Co, to run a screening programme covering 100,000 people in 100 hospitals over the next 12 to 14 months.

TruScreen listed on the NZAX last November in a compliance listing, having already raised $6.07 million in the leadup to going public. That private placement was to acquire the intellectual property and assets of the business and provide working capital to fund the commercialisation of the product.

The shares last traded at 25.5c, valuing the company at $40.2 million, and above its 10c issue price last year.

BusinessDesk receives funding from Callaghan Innovation to assist coverage of the commercialisation of innovation.