Image source: Shutterstock

Highlights:

  • MAP raises AUD 14.5 million through Placement and Share Purchase Plan to support product adoption.
  • The company signs exclusive UK lab agreement with The Doctors Laboratory, part of Sonic Healthcare.
  • MAP narrows FY25 revenue guidance to AUD 15.4 - 16 million and outlines break-even goals.

Microba Life Sciences Limited (ASX:MAP) is an Australian life sciences company focused on the development and commercialisation of microbiome testing products and services. Its technology platform supports clinicians and researchers with tools for understanding gastrointestinal health, underpinned by proprietary metagenomic sequencing capabilities

The company announced it has raised AUD 14.5 million via a two-tranche placement and a fully underwritten share purchase plan (SPP). The funding will support the company's clinical microbiome testing programs and regional expansion initiatives in Australia and the United Kingdom.

The capital raise consists of AUD 12.5 million through the placement of approximately 138.9 million new shares at AUD 0.09 per share and a further AUD 2 million from the SPP. Eligible shareholders can apply for up to AUD 30,000 in new shares under the SPP. Participants in both components will receive one unlisted option for every two shares subscribed, with each option exercisable at AUD 0.14 and expiring two years after issue. The options are subject to shareholder approval.

Microba's largest strategic shareholder, Sonic Healthcare Limited, will contribute approximately AUD 8.3 million, including AUD 4.16 million in the initial tranche. This investment will maintain Sonic's voting power at 19.14% after the first tranche, potentially increasing to 21.68% following the second tranche and SPP issuance, pending shareholder approval.

The board and management of Microba have also committed approximately AUD 290,000 under the placement.

In parallel, Microba has signed an exclusive Commercial Laboratory Processing Agreement with The Doctors Laboratory (TDL), a UK-based subsidiary of Sonic Healthcare. This agreement gives TDL a two-year option to provide laboratory services for Microba in the UK, with a follow-on three-year term upon exercise. The arrangement is designed to reduce infrastructure investment requirements for Microba as it scales internationally.

 Microba's pro forma cash position as of 31 March 2025 is expected to be AUD 26.29 million. The company stated that proceeds from the placement and Share Purchase Plan (SPP) will be allocated toward supporting product development initiatives in Australia and the UK, expanding sales, marketing, and commercial operations, generating clinical evidence to support adoption, strengthening working capital, and covering offer-related costs.

Updated FY25 revenue guidance has been narrowed to AUD 15.4 million to AUD 16 million, from the prior range of AUD 15.25 million to AUD 16.25 million. Microba also reiterated its target of achieving regional break-even in both Australia and the UK by the end of FY26, based on the assumption of more than 24,000 core tests delivered annually and over 100% growth in volumes.

The company's longer-term goal includes reaching group-wide break-even in approximately three years, subject to market conditions. This is based on expanding clinical adoption across four key regions, including initial market entry in the US and Europe.

New shares under the first tranche of the placement are expected to be issued on 27 June 2025, with trading commencing shortly after. The second tranche, along with attaching options, will be issued following shareholder approval anticipated in early August 2025. Canaccord Genuity and Morgans Corporate Limited acted as Joint Lead Managers for the placement.