Universal Biosensors announces institutional placement to raise $2.5m

Universal Biosensors, Inc. (ASX: $UBI) has secured binding commitments from institutional investors to raise $2.5m through an institutional placement of new CHESS depositary interests over fully paid ordinary shares in the Company at an issue price of A$0.15 per New CDI. The Placement involves the issuance of 16,666,667 New CDIs and does not require shareholder approval as it falls within the Company's available placement capacity under Listing Rule 7.1. Settlement of the Placement is expected to occur on Friday, 22 March 2024, with the New CDIs set to commence trading on Monday, 25 March 2024.

Executive commentary on institutional placement and entitlement offer

The Company is pleased to have received binding commitments from institutional investors for the placement, which will provide additional capital to support our ongoing business activities and strategic initiatives. The proposed Entitlement Offer, along with the underwriting arrangements by Viburnum Funds Pty Ltd, demonstrates our commitment to offering existing eligible securityholders the opportunity to participate in the capital raising. We believe that these initiatives will strengthen our financial position and contribute to the realization of our long-term growth objectives.

Summary of institutional placement and outlook

Universal Biosensors, Inc. (ASX: $UBI) has successfully secured binding commitments for a $2.5m institutional placement, which will bolster the Company's financial resources. The Placement, along with the proposed Entitlement Offer and underwriting arrangements, reflects the Company's proactive approach to fortifying its capital base and engaging existing securityholders in the capital raising process. The additional funds are expected to support the Company's strategic endeavors and contribute to the pursuit of its ambition to build a multi-product stable of biosensors in large markets, generating ongoing revenue streams. The Company's focus on strengthening its financial position and pursuing growth opportunities underscores its commitment to delivering long-term value to its stakeholders.