Neurotech to raise up to $3.3m

Business News, Tuesday, 29 January 2019, © Copyright 2019 Business News Pty Ltd.

Neurotech International has announced it is seeking to raise up to $3.3 million via a rights issue, with plans to use the funds to change the strategic direction of the company's Mente product.

Under the offer, the medical technology company will issue up to approximatealy 109.6 million shares at an issue price of 3 cents per share.

The rights issue price represents a 35 per cent discount to Neurotech's one month volume weighted average share price of 4.6 cents, as at 25 January.

News of the announcement sent the company's share price down 20 per cent to trade at 3.6 cents each at 12.30pmAEDT.

In a statement to the ASX, Neurotech said it would broaden the use of Mente beyond autism treatment to other potential conditions, including ADHD, and deliver the product from a distributor-focussed model to a subscription-based model.

The company said it would rollout iOS applications and update its software infrastructure within the next 12 months to support the subscription model.

Azure Capital Securities is acting as lead manager to the offer.

In November, Neurotech promoted non-executive deputy chairman Peter Griffiths to chief executive.

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