TruScreen raises $4.09M from institutions to fund growth
TruScreen, the NZX-listed cervical cancer test developer, raised $4.09 million in a share sale to institutional and other select investors to strengthen its balance sheet and fund future growth.
The Auckland-based company sold 25,562,500 shares at 16 cents apiece, a discount to its last traded price of 17 cents. It plans to make the same offer to existing retail shareholders, who will be able to subscribe for shares at 16 cents apiece, it said in a statement.
TruScreen is raising money to strengthen its balance sheet, fund sales and marketing initiatives, expand its manufacturing capabilities and continue to improve its devices. The company said the launch of its second generation TruScreen2 device last year had opened up commercial opportunities in a number of international markets and it's in contention for a number of large scale government screening programmes.
In particular, the company said it's targeting commercial opportunities in China and India, growth in European and Latin American markets, the funding of clinical and familiarisation trials required for product improvement and acceptance in government programmes, the expansion of manufacturing facilities and supply capabilities, building up inventory and continued product refinement.
"Cervical cancer is a major cause of mortality amongst women worldwide, particularly in countries that lack cervical cancer screening programmes," said TruTest chair Robert Hunter. "We are now seeing increased investment from governments into screening programmes and are focused on positioning our real time, accurate and cost effective TruScreen2 as the preferred technology for these large scale screening programmes. We have identified a number of immediate opportunities and this capital raising will ensure we have the resources and capacity to progress with these."
Settlement and allotment of the new shares is expected to occur on March 24, and the company said it will announce the details of the retail offer shortly.