CLAREMONT-BASED healthcare company Resonance Health Ltd this week announced a deeply discounted $3.06 million entitlements offer at two cents per share to fund further development of FibroScreen, a non-invasive liver fibrosis test using magnetic resonance imaging. The capital raising puts a cloud over a planned $8 million capital injection from the Queensland Investment Corporation, which had been priced at 6.3 cents per share. Shareholders are being offered three new ordinary shares for every four shares currently held, at a price of two cents per share. Resonance Health said in a statement the share price was not indicative of the value of its assets, and the board was mindful that many investors were holding the stock at a loss. The board wished to provide an opportunity for shareholders to participate at a lower pricing level, and believed the current share price was a result of the perception the company had insufficient funds to develop its technologies. Shares not taken up may be issued to other wholesale and professional investors, but no shares will be issued under the offer unless the company receives subscriptions of at least $1.5 million before costs, inclusive of outside investment.
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