Microba raises $1.41M placement at a discount amid deeper cost cuts
What's the deal? Australian microbiome diagnostics company MicrobaDealroom has a profile for this one. Try Dealroom → Life Sciences has secured commitments for a US$1.31M placement, selling 50,625,000 new shares at US$0.03 each. Sonic HealthcareDealroom has a profile for this one. Try Dealroom →, a major shareholder, led the raise, joined by Perennial PartnersDealroom has a profile for this one. Try Dealroom →, ThorneyDealroom has a profile for this one. Try Dealroom →, and directors Pasquale Rombola, Stephane Chatonsky, and Jacqueline Fernley.
The details: The placement comes in two tranches. Tranche 1 raises US$663.2K and settles on October 26, 2026; tranche 2 adds US$647.1K pending shareholder approval at a general meeting expected in December. Proceeds go to one-off restructuring expenses, working capital, and placement costs.
Why now? The US$0.03 price is a 9.1% discount to Microba's last close of US$0.03 and sits below the US$0.03 of its US$3.24M placement in June. The lower price underscores continuing financing pressure as the company works toward run-rate break-even in calendar 2027.
The numbers: Microba reported Q1 FY27 core testing revenue of US$1.66M, up 31% year-on-year and its 13th straight quarter of growth. Total revenue slipped 4% to US$2.23M as legacy products were discontinued. The company ended FY26 with US$5.11M in cash against US$8.02M of operating cash outflow.
The cuts: Microba has trimmed annualised cash operating costs by about US$3.24M — over 20% — since June, and plans a further US$1.94M in savings. That would bring total reductions above 30% of the FY26 cost base, driven by property consolidation, unfilled vacancies, and lower contractor, marketing, and overhead spend. Professors Ian Frazer AC and Gene Tyson will resign from the board as part of the downsizing.
What's the endgame? Tranche 2 is contingent on Genetic SignaturesDealroom has a profile for this one. Try Dealroom → obtaining shareholder approvals for a proposed all-scrip merger agreed in September, which aims to combine the two diagnostics businesses. Microba also plans an advisory process for the potential sale of its UK-based Invivo Supplements unit after inbound interest.
The signal: This is less routine growth capital than a bridge through restructuring and a proposed combination. With core testing growing but cash tight, execution and runway remain Microba's central risks.
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