Control Bionics Limited has announced a $2.06 million non-renounceable rights issue to fund the commercial expansion of its NeuroStrip device and bolster NeuroNode operations. The capital raise is underwritten to approximately $1.15 million by major shareholders and strategic partners.
- Pro rata non-renounceable rights issue to raise $2.06 million at 3.5 cents per share
- Offer underwritten to about $1.15 million by major shareholders and partners
- Funds to support NeuroStrip commercial rollout and expand NeuroNode capacity
- Ongoing clinical trials and marketing initiatives in Australia and the US
- Distribution partnerships for NeuroNode expected to conclude in Q2 FY26
Capital Raise to Fuel Growth
Control Bionics Limited (ASX – CBL), a medical device company specialising in neurotechnology solutions for patients with communication impairments, has announced a pro rata non-renounceable rights issue to raise approximately $2.06 million. The offer, priced at 3.5 cents per share, represents a discount to recent trading prices and is underwritten to around $1.15 million by the company’s largest shareholders and strategic partners.
The capital injection aims to accelerate the commercial rollout of Control Bionics’ latest innovation, the NeuroStrip, a miniaturised wearable electromyography (EMG) device designed to open new markets in health diagnostics, sports performance, and rehabilitation. Additionally, the funds will support the expansion of operational capacity for the company’s core NeuroNode technology, which enables patients to communicate via brain-to-muscle signals.
Progress and Challenges
While the company has experienced a record growth year in FY25, customer acquisition for its NeuroBounce program; developed in partnership with Neuro Elite Athletics; has progressed more slowly than anticipated in Australia and the US. Nevertheless, Control Bionics remains optimistic, with several new customers expected imminently and multiple rehabilitation trials of NeuroStrip underway, receiving positive feedback.
Control Bionics is actively negotiating distribution agreements for NeuroNode, with one or more deals anticipated to be finalised by the second quarter of FY26. These partnerships are critical to scaling the technology’s reach and commercial impact.
Offer Details and Use of Proceeds
The rights issue is open to shareholders registered in Australia and New Zealand as of 2 September 2025, offering one new share for every five held. The proceeds will be allocated primarily to software development, manufacturing, clinical trials, marketing, and strategic investments, with a significant portion earmarked for working capital to support ongoing operations.
Underwriting support comes from Nightingale Partners Pty Limited, Phoenix Development Fund Limited, Start Beyond Pty Limited; a leading VR and AR solutions provider; and Control Bionics’ CEO Jeremy Steele, each receiving a 5% underwriting fee. The company plans to apply for official quotation of the new shares on the ASX following the offer’s completion.
Looking Ahead
Control Bionics’ capital raise underscores its commitment to advancing neurotechnology solutions that improve communication for patients with conditions such as Motor Neurone Disease and ALS. The success of the rights issue and subsequent execution of growth initiatives will be pivotal in determining the company’s trajectory in competitive and emerging markets.
Bottom Line?
The rights issue sets the stage for Control Bionics’ next growth phase, but execution risks around partnerships and customer uptake remain key watchpoints.
Questions in the middle?
- Will the rights issue achieve full subscription given the partial underwriting?
- How soon will distribution partnerships for NeuroNode be finalised and what scale will they deliver?
- What impact will the slower-than-expected NeuroBounce customer acquisition have on revenue forecasts?