Rua Bioscience has announced a pro-rata renounceable rights offer to raise up to $2 million.
The offer, which will be available to existing shareholders, involves the issuance of one new share for every three existing shares.
The company said that if fully subscribed, the rights offer, along with the proceeds from the expected sale of its Gisborne property, will help fund the business to a self-sustaining position.
Rua Bioscience said it intends to use the cash raised for working capital and marketing activities.
The issue price under the rights offer is $0.025 per share, representing a 35% discount to the 5-day volume weighted average price of Rua shares.
The offer will open Nov 11 and close Nov 28. Results will be announced Dec 2 and the issue date is Dec. 4.
