BioProspect Ltd (ASX:BPO) has received firm commitments to raise $3.5 million via placement of shares at a price of $0.003.
The majority of the capital raised will be applied to progressing the testing and eventual commercialisation of Invatec’s Heart Rate Variability Technology for the diagnosis of depression and other mental health conditions.
BioProspect believes the technology has the potential to revolutionise mental health diagnosis.
The capital raising will be conducted in two tranches with an initial tranche of $1 million completed under the company’s existing placement capacity, with the balance pursuant to shareholder approval.
This will be sought as part of an upcoming meeting to approve the acquisition of Invatec and a corporate restructure.
The commitments to raise this substantial indicate confidence in the Invatec business and BioProspect's strategy going forward.
BioProspect has exercised both options to acquire an initial interest in Invatec and to licence the Heartlink technology, which together comprise the HRV technology.
The company will initially acquire 35% of Invatec and a worldwide license to the HRV technology by funding future development.
Once this is complete, BioProspect may exercise a further option to fully acquire the entire patent portfolio of Heartlink, and to increase its stake in Invatec to 80%.
The company is valued at around $12 million, and also has interests in oil and gas exploration.
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