Medtech company Proteomics International Laboratories (ASX:PIQ) has announced completion of the first phase of a targeted capital raising by the placement of six million shares at $0.24 to raise $1.44 million.
According to the company, the placement was "significantly over-subscribed" after receiving the strong backing of existing and new investors.
The placement was priced at $0.24 per share, a 12.7 per cent discount to the last sale price. The company also announced a Share Purchase Plan (SPP) to existing shareholders to raise $480,000 at $0.24 per share.
In a statement, Proteomics said the capital raised will be used to fund commercialisation and product development of its diagnostic product, PromarkerD, a breakthrough predictive test for diabetic kidney disease, and the roll-out of its new analytical testing services, in conjunction with Linear Clinical Research, for the clinical trials market.
The company has allocated $0.5 million to each area, with the balance to be used as working capital.
Managing Director Dr Richard Lipscombe said the amount sought for the raise highlighted the strength of its leveraged business model.
“We are able to target blue sky potential and medium term deal flow from our diagnostics platform and emerging diagnostic tests, whilst decreasing our burn rate through existing cash-flow from analytical services,” he said.