Microba Narrows FY25 Revenue Guidance to $15.4–16M Amid $14.5M Capital Raise

Capital Raise and Strategic Investment

Microba Life Sciences Ltd (ASX, MAP), a leader in microbiome diagnostics, has successfully secured $14.5 million in new funding. This comprises a $12.5 million two-tranche placement and a $2 million fully underwritten Share Purchase Plan (SPP). The capital raise attracted strong demand from both existing and new institutional and sophisticated investors, with Sonic Healthcare Limited, a major strategic partner and shareholder, committing up to A$8.3 million. Microba’s board and management also demonstrated confidence by investing approximately A$290,000 in the placement.

Use of Funds and Growth Strategy

The funds raised will be directed towards expanding clinical adoption of Microba’s core microbiome testing products, particularly in Australia and the United Kingdom. The company plans to advance its product development roadmap, scale sales and marketing operations, and develop targeted clinical evidence to support wider clinical uptake. Strengthening working capital and balance sheet flexibility is also a priority to support these growth initiatives.

Updated Financial Guidance and Break-even Targets

Microba has narrowed its FY25 revenue guidance to a range of $15.4 million to $16 million, slightly tightening the previous forecast of $15.25 million to $16.25 million. The company anticipates achieving regional break-even points in Australia and the UK by the end of FY26, driven by expected core test volume growth exceeding 24,000 tests and over 100% year-on-year growth. The broader strategic objective is to reach group-wide break-even within approximately three years, supported by expanding penetration among innovator and early adopter clinicians across key regions, including initial market entry in the United States and Europe.

UK Laboratory Partnership

In a significant operational development, Microba has signed an exclusive Commercial Laboratory Processing Agreement with The Doctors Laboratory (TDL), a wholly owned subsidiary of Sonic Healthcare and the largest medical diagnostics provider in the UK. This two-year agreement, with an option to extend, allows TDL to provide laboratory processing services for Microba’s UK operations. This partnership enables Microba to focus on scaling its international growth as a software-driven company without incurring capital expenditure or operational overheads related to laboratory infrastructure.

Shareholder Approvals and Timetable

The placement shares and attaching unlisted options, exercisable at $0.14 and expiring two years from issue, are subject to shareholder approval at a General Meeting scheduled for 8 August 2025. The first tranche of placement shares is expected to settle and commence trading on the ASX by late June, with the second tranche and SPP securities to follow in August. The company’s pro forma cash position post-offer is projected to be approximately A$26.29 million as of 31 March 2025.

Management Commentary

Chair Pasquale Rombola and Deputy Chair Ian Frazer highlighted the significance of continued support from long-term partners like Sonic Healthcare amid challenging capital markets. They emphasized Microba’s progress, technology strength, and the scale of opportunity in microbiome health. The funding positions the company to accelerate clinical adoption and product development, aiming to transform the lives of millions suffering from gastrointestinal disorders.