- Rhythm Biosciences (RHY) enters a trading halt while it plans a capital raise
- The healthcare stock recently established a US-based subsidiary called “IchorDX” as part of its plan to expand into the US
- The subsidiary will launch RHY’s ColoSTAT bowel cancer detection test in the US which represents one of the largest diagnostic markets in the world
- Rhythm Biosciences expects to remain in the trading halt until Friday, July 30 at the latest
- Company shares last traded at 97 cents on Tuesday, July 27
Rhythm Biosciences (RHY) has entered a trading halt while it plans to raise some capital.
The healthcare stock expects to remain in the trading halt until Friday, July 30 at the latest. By then, the market would have been given the capital raise details.
Earlier this month, Rhythm Biosciences announced establishing a US-based subsidiary to drive its expansion strategy.
IchorDX will launch RHY’s lead product, ColoSTAT, which is a bowel cancer detection test.
The simple and affordable blood test has the potential to reduce mortality rates and healthcare costs. The US is supposedly one of the company’s largest priority markets as it currently has an addressable market of over 94 million people.
Establishing a new company is expected to optimise the product launch as well as RHY’s expansion plans.
While the company is yet to release its June quarterly report, it ended the March quarter with about $4.57 million in cash and 3.2 estimated quarters left of funding.
Whether or not the upcoming capital raise will support its expansion and growth strategy is not yet clear.
Company shares last traded at 97 cents on Tuesday, July 27.