Microba Life Sciences raises $5M for cash flow breakeven

Microba Life Sciences (ASX:MAP) secured commitments to raise $5 million through a two-tranche share placement, aiming to fund its path towards company-wide cash flow break-even and accelerate core testing growth.

The capital raise is strongly backed by existing and new institutional and sophisticated investors, including major partner Sonic Healthcare (ASX:SHL), which is investing $1.5 million as part of the placement.

The placement will issue over 100 million new fully paid ordinary shares at an offer price of $0.05 per share.

Microba is introducing a share purchase plan aiming to raise an additional $1 million. Eligible shareholders in Australia and New Zealand can apply for up to $30,000 of new shares at the same $0.05 offer price.

Additionally, participants in both the placement and SPP will receive one attaching unlisted option for every new share subscribed for, exercisable at $0.0625 and expiring in three years, subject to shareholder approval.

The company reports strong momentum, achieving 11 consecutive quarters of core testing sales growth, alongside a 106% increase in the last 12 months, driven by enterprise-style healthcare contracts.

Management notes that a new category-defining testing product is scheduled to launch in Q3.