TruScreen Raises NZD 1.78M to Expand Cervical Screening Across Asia and Africa
TruScreen Ordinary Shares Group Limited has announced a combined share purchase plan and placement to raise approximately NZD 1.78 million, aiming to accelerate its international expansion and cervical cancer screening initiatives.
- Up to 136.4 million ordinary shares with attaching options to be issued
- Capital raise priced at NZD 0.022 per share with a 2.5% discount
- Funds targeted for expansion in China, Vietnam, Zimbabwe, Uzbekistan, Indonesia, ASEAN, and India
- Placement includes options issued to lead managers as fees
- Shareholder approval required with record date set for 28 May 2025
TruScreen’s Strategic Capital Raise
TruScreen Ordinary Shares Group Limited has unveiled plans for a significant capital raising through a share purchase plan (SPP) and placement, aiming to issue up to 136.4 million ordinary shares accompanied by options. The combined effort is expected to raise approximately NZD 1.78 million, with shares priced at NZD 0.022 each, reflecting a modest 2.5% discount to the recent five-day volume weighted average price.
The company’s move comes as part of a broader strategy to bolster its footprint across multiple emerging markets, including China, Vietnam, Zimbabwe, Uzbekistan, Indonesia, ASEAN countries, and India. These regions represent key growth opportunities for TruScreen’s cervical cancer screening technology and related healthcare products.
Use of Proceeds and Market Expansion
Funds raised will be directed towards expanding TruScreen’s presence in the Chinese market and supporting distribution of Dalton IVD DNA Bio HPV products. Additionally, the capital will underpin ongoing cervical cancer screening programs in Vietnam, Zimbabwe, and Uzbekistan, as well as development efforts in Indonesia, ASEAN, and India. The company also plans to allocate part of the proceeds to general working capital, ensuring operational flexibility as it scales.
TruScreen’s approach combines a placement with a share purchase plan, allowing existing shareholders to participate while also attracting new investors. This dual structure is designed to provide the company with greater certainty in achieving its targeted raise and pricing, while broadening its shareholder base.
Shareholder Participation and Governance
The record date for eligibility to participate in the offer is set for 28 May 2025, with allotment planned for 30 June 2025. Shareholder approval is a prerequisite for the issuance of options and acceptance of any oversubscriptions, aligning with NZX Listing Rule 4.2. The lead managers for the placement, Corporate Ltd GBA SP Pty and Capital Pty Ltd, will receive options as part of their fees, capped at 25 million options.
TruScreen’s management emphasizes that the placement structure was chosen over a pro-rata rights issue to provide a more efficient capital raising mechanism, enabling access to a broader investor pool and enhancing liquidity.
Looking Ahead
As TruScreen embarks on this capital raising journey, the market will be watching closely to see how effectively the company leverages the new funds to accelerate growth in key international markets and advance its cervical cancer screening programs. The success of this raise could set the tone for TruScreen’s next phase of development and shareholder value creation.
Bottom Line?
TruScreen’s capital raise sets the stage for accelerated global growth—but execution risks remain.
Questions in the middle?
- Will shareholder approval be secured smoothly for the options and oversubscription terms?
- How will the market respond to the dilution from the new shares and options issued?
- What milestones will TruScreen target first with the new capital in its international expansion?