Microba Life Sciences invites eligible shareholders to participate in a $2 million Share Purchase Plan at $0.09 per share, matching recent institutional pricing and including free attaching options. The capital raise aims to accelerate clinical adoption and push the company towards regional break-even.
- Share Purchase Plan to raise $2 million at $0.09 per share
- Free attaching options exercisable at $0.14 for two years
- Offer open to Australian and New Zealand shareholders
- Funds to support growth and regional break-even milestones
- Shareholder approval required at August 8 general meeting
Microba’s Strategic Capital Raise
Microba Life Sciences Limited (ASX, MAP) has opened a fully underwritten Share Purchase Plan (SPP) targeting $2 million in new capital at a share price of $0.09. This price aligns with the recent $12.5 million institutional placement, offering retail shareholders an equal opportunity to invest on the same terms. The SPP is designed to accelerate Microba’s clinical adoption of its microbiome testing products as the company pushes towards regional break-even milestones.
Attractive Terms for Eligible Shareholders
Eligible shareholders residing in Australia and New Zealand as of June 20, 2025, can participate by investing between $2,000 and $30,000. Notably, the offer includes free attaching options at a ratio of one option for every two shares purchased. These options are exercisable at $0.14 each for two years post-issue, providing potential upside beyond the initial share price. Importantly, the SPP carries no brokerage fees, making it a cost-effective way for shareholders to increase their stake.
Use of Proceeds and Growth Outlook
The funds raised through the SPP will be directed towards expanding the clinical adoption of Microba’s core microbiome testing products. This focus underscores the company’s commitment to delivering improved health outcomes for patients while driving shareholder value. Microba is currently in a critical growth phase, and this capital injection is expected to support initiatives that bring the company closer to profitability in its key regional markets.
Process and Shareholder Engagement
The SPP opened on June 27, 2025, and will close on August 6, 2025, subject to the company’s discretion to extend or close earlier. Shareholder approval for the issue of new shares and options is scheduled for a general meeting on August 8, 2025. Microba encourages shareholders to participate through the Automic Investor Portal, offering a streamlined application process. The company also promotes its Interactive Investor Hub as a platform for shareholders to engage directly with management and stay informed about company developments.
Balancing Dilution and Opportunity
While participation in the SPP is voluntary, shareholders who choose not to participate risk dilution of their holdings as new shares are issued. The company has indicated that if applications exceed the $2 million target, allocations will be scaled back on a pro-rata basis. This mechanism ensures the raise does not exceed its target but may result in some shareholders receiving fewer shares than applied for, with refunds issued accordingly.
Bottom Line?
Microba’s SPP offers shareholders a timely chance to back growth at institutional prices, but approval and uptake will be key to its success.
Questions in the middle?
- Will shareholder approval be secured at the August 8 general meeting without complications?
- How will the market respond to the dilution impact once new shares and options commence trading?
- What specific growth initiatives will the new capital fund, and how soon might they influence profitability?