The Rhythm Biosciences Ltd (ASX: RHY) share price is charging higher in afternoon trade, up 7% to $1.21 per share.
Below we take a look at what's driving investor interest in the ASX medical diagnostics technology company.
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What did Rhythm announce?
The Rhythm Biosciences share price is gaining after the company reported it had successfully completed its non-renounceable pro-rata rights issue to raise $4.3 million, before costs.
While Rhythm set out to raise $4.3 million, it said actual subscriptions – including "entitlements, additional shares applied for, and letter of commitments" – totalled $12.05 million.
With actual subscriptions some 280% more than Rhythm was seeking, it said its share registry will return funds to unsuccessful applicants "as soon as practicable".
As interest ran stronger than anticipated, the company said it will now offer a small "heavily scaled back placement". This will select sophisticated and other exempt investors who had provided commitment letters for the previous offer.
Up to 1.5 million shares will be issued at a price of 85 cents per share to raise $1.28 million before costs. Rhythm said participants will also be offered 2 varieties of attaching, unlisted options.
John Hancock, who cornerstoned the placement, said: "The innovative ColoSTAT product, developed from research by the CSIRO and Rhythm, has the potential to be a global game-changer in the early mass-market screening for colorectal cancer."
Commenting on the offer, Rhythm's CEO, Glenn Gilbert said:
I'm pleased that the offer was strongly supported by existing shareholders, alongside the board and myself, further demonstrating our alignment. Coupled with an R&D tax incentive refund, expected shortly, the company is well funded to execute on our development and commercialisation plans outlined in our FY22 strategic plan.
Rhythm Biosciences share price snapshot
The Rhythm Biosciences share price has gained an eye-popping 991% over the past 12 months. Over that same time, the All Ordinaries Index (ASX: XAO) is up 27%.
Over the past month, Rhythm's shares are up 24%.
