Atomo Diagnostics (ASX:AT1) has completed a share placement and says it will implement changes to its board and business operations to reflect its strategic and operational needs.
Atomo is an Australian-headquartered medical device company supplying integrated rapid diagnostic test devices to the global market.
The company said it is seeking to raise up to $3.1 million through a placement to raise up to $2.1 million and a share purchase plan to raise up to $1 million. The placement will result in approximately 112 million new fully paid ordinary shares at an issue price of 1.85 cents per share, with one free attaching option, exercisable at 4 cents, expiring 3 years from the date of issue.
The company said the funds are being raised to meet the general working capital requirements.
In addition to the placement, the company will offer eligible shareholders with a registered address in Australia or New Zealand the opportunity to participate in a share purchase plan. Eligible shareholders will be entitled to apply for up to $30,000 worth of share purchase plan shares, targeting a raise of up to $1 million before costs.
The company also said it will reduce its board to four directors. Deborah Neff, Dr Paul Kasian and John Keith will resign as directors effective 2 May. Anthony May and Patrick Cook will join the board.
Managing director John Kelly said, “We are excited about our future. We have over the last 12 months with great rigour reviewed all projects and roles within the company and prioritised what will deliver the biggest impact for Atomo. I am confident we can deliver our most important strategic imperatives whilst running the leanest possible fit for future organisation”.
Mr Kelly added, “I would like to extend my sincere gratitude to Mr John Keith, our outgoing chairman, for his dedicated service and leadership during his tenure. He has been a champion for Atomo and has helped the company grow from a start up to a listed company now delivering improved diagnostics to vulnerable communities around the world. I would also like to thank Deborah Neff and Paul Kaisen for their extensive efforts on the board and leadership chairing key board committees at Atomo.”
