- Autism treatment company Neurotech International (NTI) is getting ready to tap investors for some new cash to fund an upcoming acquisition
- The company requested back-to-back trading halts today, meaning shares will be frozen until Wednesday, July 8, as it gets ready to reveal the details of the business purchase and capital raise
- The capital raise likely comes as no surprise to investors, given Neurotech’s cash position at the end of the March quarter
- The company spent $154,000 over the March quarter but had just $140,000 to play with at the end of March
- Shares in Neurotech last traded for once cent each yesterday afternoon
Autism treatment company Neurotech International (NTI) is getting ready to tap investors for some new cash to fund an upcoming acquisition.
The company requested back-to-back trading halts as it prepares to launch the cap raising and announce the business purchase. As it stands, shares will be frozen until Wednesday, July 8.
It’s been a tough year for Neurotech so far after its flagship Mente Autism device was unexpectedly removed from the Australian Register of Therapeutic Goods in January. While the company insisted this would have no material impact on revenue, it means the product can no longer be sold as a medical device anywhere in Australia.
Since then, Neurotech has been focussing on building awareness and sales for the device in Europe and America.
Mente is a portable headband that can help children with autism self-regulate, relax, and focus. Neurotech says the product rebalances excessive activation of low and high-frequency brainwaves which can often lead to anxiety and hyperactivity.
With today’s announcement of an upcoming acquisition, however, shareholders might be starting to wonder if the company is changing tack and moving away from Mente given its lack of success in Australia.
Of course, the capital raise likely comes as no surprise, given Neurotech’s cash position at the end of March. According to its latest quarterly report, the company had just $33,000 cash on hand entering into the final quarter of the 2020 financial year.
Combined with $107,000 in available loan facilities, Neurotech had $140,000 to play with for the quarter after spending $154,000 the quarter before.
At the time, company Directors said they remain confident there will be enough demand from shareholders to raise some extra funds if necessary. Today’s announcement of an upcoming raise means director confidence will be put to the test.
Shares in Neurotech last closed worth one cent each yesterday afternoon. The company has a $2.15 million market cap.