54 Million Shares and Options Offered at $0.0185 and $0.04 Exercise Price

• Offer includes up to 54 million shares and options via Share Purchase Plan
• Options exercisable at $0.04, expiring in 36 months
• Target market defined as short to medium-term investors with financial capacity
• Placement offer includes nearly 68 million options to select participants
• Company emphasizes speculative nature and advises careful investor consideration

Capital Raising Overview

Atomo Diagnostics Limited (ASX: AT1), a player in the healthcare equipment and services sector, has announced a Target Market Determination (TMD) for a fresh capital raising initiative. This involves issuing new options and shares under a prospectus dated May 20, 2025. The offering includes a Share Purchase Plan (SPP) designed to raise up to $1 million, a shortfall offer, and a placement targeting specific investors.

The SPP allows eligible Australian shareholders to subscribe for up to 54 million shares at an issue price of $0.0185 each, with one free attaching option for every share subscribed. These options carry an exercise price of $0.04 and expire 36 months from issue, providing investors with a medium-term opportunity to increase their stake in the company.

Target Market and Investor Suitability

The TMD clearly outlines the intended audience for this offer: investors with a short to medium-term investment horizon who are financially capable of exercising the options within three years. The company stresses that these options are speculative, with no guaranteed income or capital protection, and that investors should be comfortable with the risks associated with small to mid-cap healthcare equities.

Atomo Diagnostics highlights that the options are not suitable for all investors, particularly those unable to bear potential losses or lacking sufficient financial literacy. The company encourages prospective investors to thoroughly review the prospectus and seek professional advice before participating.

Distribution and Compliance Measures

Distribution conditions restrict the offer to eligible shareholders and placement participants, with directors retaining discretion over shortfall allocations. The company has established review triggers to reassess the TMD if material changes occur, such as regulatory shifts or significant market developments. Reporting requirements are in place to monitor complaints and ensure distributors comply with the TMD and prospectus terms.

Mathew Watkins, Company Secretary, is the designated contact for inquiries related to the TMD, underscoring the company’s commitment to transparency and regulatory compliance.

Strategic Implications

This capital raising effort reflects Atomo Diagnostics’ strategy to strengthen its balance sheet and support growth initiatives within the competitive healthcare sector. By targeting a defined investor segment and emphasizing the speculative nature of the options, the company aims to align investor expectations with the inherent risks and potential rewards of its business model.

While the offer provides a pathway for shareholders to increase their exposure, the lack of guaranteed returns and the need for sufficient financial capacity to exercise options may temper enthusiasm among more risk-averse investors.

Bottom Line?

Atomo Diagnostics’ options offer sets the stage for a pivotal funding round, but investor appetite will hinge on risk tolerance and market conditions.

Questions in the middle?

• How will the market respond to the speculative nature of the options?
• What impact will the capital raise have on Atomo Diagnostics’ growth trajectory?
• Could regulatory changes trigger a review or amendment of the Target Market Determination?