PainChek Ltd Launches AUD $5.1 million Capital Raise to Drive Global Expansion

Highlights:

• Fully Underwritten Capital Raise: PainChek Ltd (ASX: PCK) launches a 1-for-8 entitlement offer to raise AUD $5.1 million, with each new share priced at AUD $0.025 and one free attaching option per share.
• Global Expansion Goals: Funds will support U.S. market entry post-FDA clearance, further expansion in ANZ and the UK, and the commercial launch of the Infant App.
• Strategic Financing Ahead: The capital raise underpins PainChek's preparations for a significant strategic financing round in mid-2025 to drive further growth.

PainChek Ltd (ASX: PCK), a leader in smartphone-based pain assessment and monitoring, has announced a fully underwritten pro-rata entitlement offer to raise approximately AUD $5.1 million. The offer aims to fuel the company's growth initiatives, including U.S. market entry and further expansion in Australia, New Zealand, and the UK.

Entitlement Offer Details

The capital raise is structured as a 1-for-8 non-renounceable entitlement offer priced at AUD $0.025 per share. Shareholders will also receive one free attaching option for every new share, exercisable at AUD $0.05, expiring 12 months from issuance. The offer is fully underwritten by Canaccord Genuity (Australia) Limited and will include approximately 204 million new shares and options.

Eligible shareholders in Australia and New Zealand can participate starting December 2, 2024, with the offer closing on December 12, 2024. PainChek plans to utilize the funds to achieve its objectives through June 2025, including FDA clearance and commercial launch of its Infant App.

Strategic Allocation of Funds

The raised capital will support:

• Expansion of Aged Care and Home Care sectors in ANZ and the UK.
• Recruitment for U.S. market entry following anticipated FDA approval.
• Finalizing and launching the Infant App, targeting direct-to-consumer markets.
• Enhancements to PainChek's technology platform.
• Preparing for a strategic financing round in mid-2025.

Significance of the Capital Raise

PainChek CEO Philip Daffas emphasized the pivotal role of the funding in scaling operations and achieving the company's mission of alleviating pain worldwide.

At the time of writing, PainChek's stock trades at AUD $0.028, with the entitlement offer priced at a 10.7% discount to the last traded price. This strategic funding move positions PainChek for sustained growth and innovation in the global healthcare sector.

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