TruScreen’s NZ$3 Million Raise: Can It Deliver on Ambitious Market Expansion Plans?

Capital Raise Details and Structure

TruScreen Group Limited (NZX/ASX: TRU), a medical device company specialising in cervical cancer screening technology, has announced the launch of a NZ$3 million capital raising initiative. The raise is structured through a placement to institutional and select investors, alongside a share purchase plan (SPP) for existing shareholders. Both components offer new shares at NZ$0.022 each, with free attaching options exercisable within 12 months, pending shareholder approval.

The placement aims to raise approximately NZ$1.78 million, while the SPP targets NZ$1.22 million, with the potential for oversubscriptions subject to board and shareholder consent. Joint lead managers SP Corporate Advisory and GBA Capital are overseeing the placement, which is not underwritten.

Strategic Growth and Market Expansion

TruScreen’s capital raise is designed to fund a suite of strategic initiatives that underscore its ambition to deepen market penetration and broaden its product offerings. Key focus areas include expanding its footprint in China, which remains the company’s largest market, and distributing Dalton Bio IVD HPV DNA products through a recently signed memorandum of understanding with Hangzhou Dalton Bioscience.

Additionally, TruScreen is advancing public cervical cancer screening programs in Vietnam, Zimbabwe, and Uzbekistan, leveraging partnerships with local health authorities and NGOs. The company has also appointed distributors in Indonesia and India, targeting significant addressable markets in Southeast Asia and South Asia.

Recent Milestones and Global Recognition

FY2025 saw TruScreen achieve several notable milestones, including inclusion in World Health Organisation and UNITAID screening guidelines, and invitations to present at international forums on AI and digital health technologies. The company’s technology has gained regulatory approvals such as COFEPRIS certification for Mexico’s public health system and is undergoing product registration in Uzbekistan.

Clinical studies, such as one published in Saudi Arabia, demonstrated TruScreen’s diagnostic sensitivity and specificity outperforming traditional Pap smear tests, reinforcing its value proposition. What's more, TruScreen was ranked among the top six healthcare companies impacting global women’s health in the Health Startups 2024 report.

Financial Position and Use of Proceeds

The proceeds from the capital raise will not only fuel growth initiatives but also provide additional working capital and enable repayment of an existing line of credit with Chairman Tony Ho. This financial strengthening is timely as TruScreen prepares for product re-validation in Zimbabwe, which has deferred some expected revenues into FY2026.

While revenue in China remains steady, improvements in the usage of single-use sensors and expansion into new provinces are expected to drive growth in the coming year. The company’s approach balances aggressive market development with prudent financial management.