TruScreen Group Ltd Announces Capital Raising

The TruScreen® Ultra device is registered in 20 countries. Cervical cancer is the fourth most common cancer in women worldwide with 570,000 new cases each year. Most diagnoses occur at ages 35-44.

By Mr Guy Robertson:

TruScreen Group Ltd (NZX/ASX: TRU) is seeking growth capital to raise up to NZD $2.8 million through the issue of 140,008,446 New Shares at NZ$0.02/A$0.0187 per share. A 31% discount of the share price at market close 9 February 2024.

TruScreen provides a real-time screening solution for cervical cancer.

Funds will be used for working capital (inventory, receivables and marketing) to capitalise on China growth and new market opportunities in China, Vietnam, Saudi Arabia and Mexico.

The TruScreen technology is recommended by the Chinese Obstetrics and Gynecological Association ‘s Blue Book and features in the Chinese Society of Colposcopy and Cervical Pathology National Screening Guidelines. TruScreen ® Ultra device is registered in 20 countries and commercially used in China, Vietnam, Mexico, Zimbabwe, Russia and Poland, and Saudi Arabia.

Consumable revenue model

  • World-class technology
  • Single visit, non-invasive, mobile screening technology, artificial intelligence enabled
  • No laboratory infrastructure required; nurse administered
  • Accuracy equal to, or better, than leading screening methods
  • Recommended by COGA Blue Book and CSCCP, China
  • Annuity revenue stream (Single Use Sensor). FY24 sales revenue growth 35%
  • Large global distribution network
  • Ramping up growth in China and existing markets
  • Ongoing manufacturing and logistics improvements to drive COGS down
  • Largest market and opportunity China

Largest market and opportunity China

  • China NZ$1.78 M sales 9 months YTD December 2023, 77% up on prior year
  • Rapid China growth supported by Made in China (MIC) status secured in FY 2022 –preferred market access
  • MIC creates strong barrier to entry for potential, future competitors
  • TruScreen recommended by COGA BLUE BOOK, a Consensus, by the top country gynaecologists
  • CSCCP Specialist Guideline features TruScreen technology

Growth Opportunity

  • Group – 9 mths to December 2023 sales growth units: devices 40% growth and SUS 22% growth comparing with same period FY 2023
  • Prior year – FY 2023 snapshot, (COVID impacted)
  • FY23 Sales NZ$1.6m, device installations up 15% YOY, despite Covid lockdown in China
  • Total Revenue NZ$2.2m

Recent success in Mexico with approval to enter public health sector, and Saudi Arabia with reimbursement approval from health insurers supports new growth.

Cervical Cancer Elimination Goal

  • Fourth most common cancer in women worldwide
  • 570,000 new cases each year
  • 311,000 deaths
  • Most diagnoses occur at age 35-44

Executive Team

Dr. Beata Edling, Chief Executive Officer
Guy Robertson, Chief Financial Officer
Edmond Capcelea, Chief Technology Officer
Dr. Jerry Tan, Lead Commercial Manager, APAC, Americas

[email protected]

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