- Healthcare stock Rhythm Biosciences (RHY) successfully completes its rights issue and raises $4.3 million
- The issue was strongly oversubscribed with the company receiving subscriptions totalling $12.05 million
- Due to the strong support, Rhythm will undertake a small, heavily scaled back placement to sophisticated and other investors to raise $1.27 million
- Rhythm will use the money to accelerate and expand its development and commercialisation plans
- Shares in Rhythm are up 5.31 per cent and are trading at $1.19 at 2:10 pm AEST
Healthcare stock Rhythm Biosciences (RHY) has successfully completed its rights issue and raised $4.3 million.
The rights issue was strongly oversubscribed with the company receiving subscriptions totalling $12.05 million.
Additionally, it was cornerstone by respected investor John Hancock who commented on the placement.
“I am delighted with this opportunity to increase my shareholding in Rhythm via this placement and thank the board for accommodating via this ancillary placement,” Mr Hancock said.
“As stated previously, in healthcare, I favour products that are simple, effective and reduce costs with a large addressable market.”
Due to this strong support, Rhythm will undertake a small, heavily scaled back placement to sophisticated and other investors.
Up to 1.5 million fully-paid shares will be issued at 85 cents to raise $1.27 million.
Participants will also be offered attaching unlisted options, consisting of one Class A option and one Class B option, for every two new shares.
The Class A options will be exercisable at $1.20 and expire on August 31, 2022, while the Class B options will be exercisable at $1.80 and expire on July 31, 2024.
Rhythm will use the money to accelerate and expand its development and commercialisation plans.
CEO Glenn Gilbert is pleased with the support received.
“Coupled with an R&D tax incentive refund, expected shortly, the company is well funded to execute on our development and commercialisation plans outlined in our FY22 strategic plan.”
Shares in Rhythm were up 5.31 per cent and were trading at $1.19 at 2:10 pm AEST.