Zoono Offers Shares at 3.5 Cents to Raise $1.78M for Asia Expansion

Capital Raise to Support Growth Initiatives

Zoono Group Limited (ASX, ZNO), a biotech company specialising in antimicrobial solutions, has announced a non-renounceable rights issue aimed at raising approximately $1.78 million. The offer allows eligible shareholders to subscribe for one new share for every seven shares they currently hold, priced at 3.5 cents each. This move is designed to bolster the company’s financial position and fund key projects.

Focus on Shelf-Life Extension and Market Expansion

The primary use of the funds raised will be to advance Zoono’s supermarket shelf-life extension project, particularly targeting growth opportunities in China and India. These markets represent significant potential for the company’s antimicrobial products, which are designed to extend the freshness and safety of perishable goods. By investing in this initiative, Zoono aims to strengthen its footprint in two of the world’s largest consumer markets.

Addressing Debt and Protecting Intellectual Property

In addition to project funding, the capital raise will facilitate repayment of related party debt, a move that could improve the company’s balance sheet and reduce financial risk. Zoono also plans to allocate resources toward patents and intellectual property protection, safeguarding its proprietary antimicrobial technology. This strategic focus on IP underscores the company’s commitment to maintaining its competitive edge in a crowded biotech landscape.

Shareholder Participation and Market Implications

Notably, Zoono’s Managing Director, Paul Hyslop, along with other directors, have signaled their intention to fully participate in the rights issue, which may inspire confidence among investors. Shareholders will also have the opportunity to apply for any shares not taken up in the initial offer, potentially increasing their stake. However, the issue will dilute existing shareholdings by about 14%, a factor investors will weigh against the potential growth benefits.

Looking Ahead

The timetable for the rights issue spans from late June to mid-July 2025, with shares expected to commence trading shortly after. As Zoono moves forward, market watchers will be keen to see how effectively the company deploys the new capital and whether the shelf-life extension project delivers on its promise in key Asian markets.