PanBio raising restricted to $1m

A softening market and a low share price have had an impact on PanBio's (ASX:PBO) recently completed share purchase plan offering to shareholders, which has raised just under AUD$1 million out of a possible $4.2 million.

In the raising, 2,297,684 shares have been issued at a price of $0.42 to raise a total of $965,027.28, and will begin trading on Monday.

"Our SPP came in lower than the cap [we had put on it]," said PanBio CEO Jim Porter. "But we did not have the expectation that it would be fully subscribed."

The SPP issue price was set at $0.42 to match the issue price of May's placement of $3 million, but since May 19, the shares have been trading just around this price level. In the days prior to the close of the SPP on July 9, the shares were trading at $0.42-0.44.

Porter said the capital raised by the placement and the SPP were slated for technology development, specifically the company's Oligo Rapid technology and its homogeneous assay system, which is supported by a recent technology licence from Stanford University.

"We went for this funding not for routine operations but for these two projects... so we're happy with where we're at," he said.

At the time of writing, PanBio shares were trading at $0.40.