TruScreen Offers Shares at 24% Discount in NZ$1.22 Million Capital Raise

TruScreen's Strategic Capital Raise

TruScreen Group Limited, a medical device company specialising in AI-enabled cervical cancer screening technology, has announced a Share Purchase Plan (SPP) to raise up to NZ$1.22 million. The offer, available exclusively to shareholders in New Zealand and Australia, allows investors to purchase new shares at a significant discount, with the issue price set at the lower of NZ$0.022 per share or a 2.5% discount to the volume-weighted average price (VWAP) preceding the closing date.

Eligible shareholders can invest up to NZ$50,000, with the plan designed to bolster TruScreen’s capital base to support its ambitious growth agenda across multiple international markets.

Incentives and Share Options

In addition to discounted shares, the company proposes to issue unlisted share options on a one-for-one basis relative to new shares subscribed, contingent on shareholder approval at a forthcoming special meeting. These options will have a 12-month expiry and an exercise price aligned with the discounted share price, offering investors potential upside if the company’s share price appreciates.

Should shareholders not approve the options, the SPP will proceed without this component, meaning participants will receive shares but no options.

Funding Growth in Key Markets and Programs

The capital raised will be strategically deployed to expand TruScreen’s footprint in its largest market, China, where it already operates 102 devices and has seen a 30% year-on-year increase in consumable usage. The funds will also support distribution of HPV DNA products through a partnership with Hangzhou Dalton Bioscience, and the execution of public cervical cancer screening programs in Vietnam, Zimbabwe, and Uzbekistan.

Further growth initiatives include developing markets in Indonesia, ASEAN countries, and India, where TruScreen recently appointed a new distributor and is progressing regulatory registrations. These efforts align with the company’s mission to provide accessible, non-invasive cervical cancer screening solutions in low- and middle-income countries lacking extensive laboratory infrastructure.

Operational Performance and Outlook

For the financial year ended 31 March 2025, TruScreen reported an operational loss after tax of approximately NZ$2.2 million, slightly wider than the prior year’s NZ$2.0 million loss. This was influenced by delayed revenues from public screening programs and a lower-than-expected R&D tax refund, which is anticipated to be received in August 2025.

Despite these challenges, the company has secured multiple regulatory approvals and endorsements, including inclusion in World Health Organization guidelines and approvals for use in Mexico’s public health system. These milestones underpin TruScreen’s confidence in its growth trajectory.

Investor Considerations and Next Steps

The SPP closes on 23 June 2025, with share allotments expected by 30 June. Oversubscriptions will be managed through proportional scaling, and any excess shares beyond the initial NZ$1.22 million cap will require shareholder approval. Directors have signaled their intention to participate, reflecting confidence in the company’s prospects.

Investors should note the inherent risks, including potential share price volatility between application and allotment, and the conditional nature of the share options. The forthcoming special meeting and subscription outcomes will be critical to watch for insights into shareholder sentiment and capital structure changes.