Cleo Diagnostics (ASX:COV) has secured $5 million in capital to support its expansion into the United States and speed the development of a new mass screening test for ovarian cancer, in a raise that attracted strong backing from institutional and high-net-worth investors.
The Melbourne-based company, which is developing a suite of diagnostic tools for the early detection of ovarian cancer, completed the placement at $0.60 per share, an 8.4 per cent discount to its 15-day volume-weighted average price. A total of 8.33 million shares will be issued under the raise, alongside 833,333 options to lead manager Petra Capital. Settlement is expected on 24 December, with allotment to follow on 29 December.
Cleo said the funding will enable it to drive the commercial launch of its Pre-Surgical Ovarian Cancer Test in the US, including market-entry initiatives, reimbursement work and expansion of manufacturing capacity. The raise will also support the fast-tracking of its high-value ovarian cancer screening test, a major component of the company’s long-term strategy to shift diagnosis to earlier, more treatable stages of the disease.
CEO Dr Richard Allman said the placement marked a critical inflection point for the company. “This raise is a significant milestone for CLEO, and we’re delighted by the backing we’ve received from institutional investors and our existing shareholder base,” he said. “The funds enable us to move decisively into the US market while advancing our screening test development at an accelerated pace.”
Cleo Diagnostics is developing diagnostics based on CXCL10, a biomarker produced early and at high levels in ovarian cancer but largely absent in benign disease. Supported by more than 15 years of research, the company’s platform aims to overcome one of medicine’s most pressing challenges: ovarian cancer’s persistently late diagnosis and its high mortality rate. The disease has the highest five-year fatality rate of any cancer affecting women, with more than half of patients dying within five years—largely due to the lack of effective screening tools.