Cleo Diagnostics raises $5M for US launch and screening test development

Ovarian cancer diagnostics company Cleo Diagnostics (ASX:COV) has raised $5 million through a strongly supported placement at $0.60 per share.

The capital raise attracted new high-quality institutional investors alongside support from existing shareholders.

Proceeds from the placement will fund the US commercial launch of CLEO's pre-surgical ovarian cancer test, including market entry initiatives, reimbursement strategies, and expanded manufacturing capacity.

The funds will also accelerate the development of a high-value mass screening test, covering clinical trials and regulatory activities, as well as support general corporate purposes.

The placement involved the issuance of 8,333,334 shares, alongside 833,333 unlisted options, and represents an 8.4% discount to the 15-day volume-weighted average price of $0.655.

Petra Capital acted as the sole lead manager and bookrunner. Settlement is expected on Dec. 24, with allotment scheduled for Dec. 29.

Cleo CEO Dr Richard Allman commented, "This raise is a significant milestone for CLEO. The support from institutional investors and existing shareholders enables us to move decisively into the US market while advancing our screening test developments at an accelerated pace."

At the time of reporting, Cleo Diagnostics' share price was $0.62.