Rua Bioscience launched a pro-rata renounceable rights issue to raise up to NZ$2.8 million. Existing shareholders in New Zealand and Australia can purchase one new share for every three held. The offer price is NZ$0.025 per share.
This price represents a 32% discount to the recent volume-weighted average price. The discount reflects the company's 20-day trading history. Rua Bioscience earmarked the funds for working capital and marketing to meet surging international demand.
The raise follows a UK sales agreement expected to generate NZ$10 million. The company projects this revenue over a two-year period. Rua Bioscience also plans to sell its Gisborne manufacturing facility. These combined proceeds aim to help the company reach a self-sustaining financial position.