Resonance Health to raise $5.1 million

Resonance Health intends to raise up to $5.1 million with a placement and entitlement offer, pitched at 5 cents per share.

The issue price represents a discount of 20 per cent to Resonance’s last closing price of 6.3 cents on Monday.

The raising follows a big increase in Resonance’s share price late last year, from 1.5 cents in October to as high as 7.5 cents in December.

Azure Capital has been engaged as lead manager in relation to the placement and entitlement offer.

The healthcare company will offer 10 million shares through a placement that will raise total proceeds of $0.5 million.

The entitlement offer will consist of approximately 93 million shares to raise total proceeds of roughly $4.6 million, which will allow current Resonance shareholders to subscribe for one new share for every four shares that have already been purchased.

The entitlement offer has not been underwritten.

The company plans to use the proceeds from the offer to further develop its MRI-based technology, which is used to diagnose and monitor human diseases such as liver fibrosis and iron overload causes, including hemochromatosis.

The company had only $1.1 million at the end of November last year, according to its last financial report.