- PainChek (PCK) hopes to raise $4.59 million through an entitlement offer and share placement to accelerate its commercial rollout
- Under the entitlement offer, eligible shareholders can subscribe for one new share for every 20 shares held at the June 29 record date, for 2.8 cents each
- Professional and sophisticated investors not participating in the offer can subscribe for shares at the same price under a placement of over 107 million shares
- The funds are set towards product development, obtaining US FDA clearance and also for sales, marketing, operations and support staff
- Company shares are down 12.1 per cent trading at 2.9 cents at 1:33 pm AEST
PainChek (PCK) is looking to raise $4.59 million through an entitlement offer and placement to accelerate its commercial rollout.
The company, which developed the world’s first smart-phone based pain assessment and monitoring application, emerged from a trading halt today, revealing details of a non-renounceable pro-rata entitlement offer and share placement.
Under the entitlement offer, eligible shareholders can subscribe for one new share for every 20 shares held at the June 29 record date, for 2.8 cents each.
At the record date, the company will have 1.1 billion shares on issue and expects to issue 56.6 million new shares under the offer to raise approximately $1.59 million.
The offer includes a shortfall facility, through which shareholders will be able to exceed their full entitlement and apply for additional shares that may not have been taken up.
Shareholders have until July 27 to participate in the entitlement offer with the results due on July 29.
Simultaneously, PainChek has offered up roughly 107 million shares to professional and sophisticated investors at the same price as the offer in the hopes of raising a further $3 million.
Participants of the placement are unable to participate in the underwritten entitlement offer.
The company said it has received support from international senior executives within the healthcare and medical tech sectors for the placement.
PainChek is being rolled out globally, firstly for adults who are unable to verbalise their pain, and secondly for infants who haven’t learnt to speak.
With the combined funds, PCK said it will be able to upgrade its core technology as well as develop a second version of the app for its Infant sector.
Additionally, the money is set towards sales, marketing, operations and supporting staff.
Both the adult and infant products have received regulatory clearance in Australia, Europe, the UK, New Zealand, Singapore and Canada, and the company will use the fresh capital to pursue clearance from the US Food and Drug Administration.
In the US, PainChek is advancing production of an app for its Adult-targeted product, as-well as undertaking further clinical trials.
Company shares dropped 12.1 per cent to 2.9 cents at 1:33 pm AEST.
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