Microba Closes US$1.4Mn to Fund Restructuring and Support Merger Plans

The funding comes as the company continues to reduce expenses and works toward achieving run-rate break-even in calendar 2027.

The placement is backed by major shareholder Sonic Healthcare, alongside Perennial Partners, Thorney, and company directors.

Microba Secures Funding Through Share Placement

Microba Life Sciences has secured commitments for a placement of 50.625 million new shares at US$0.03 per share. The company plans to raise approximately US$1.31 million through the transaction, according to the reported tranche amounts.

The placement will be completed in two tranches. The first tranche, worth approximately US$663,200, is scheduled to settle on October 26, 2026. The second tranche, worth approximately US$647,100, is subject to shareholder approval at a general meeting expected in December 2026.

The company plans to use the proceeds to cover one-off restructuring expenses, support working capital, and pay placement-related costs.

Microba Reports Growth in Core Testing Revenue

Microba reported core testing revenue of US$1.66 million for the first quarter of FY2027, marking a 31% increase compared with the same period a year earlier. The company recorded its 13th consecutive quarter of growth in this business segment.

However, total revenue declined 4% to US$2.23 million, partly reflecting the discontinuation of legacy products.

The company ended FY2026 with US$5.11 million in cash, compared with operating cash outflows of US$8.02 million during the financial year. The difference highlights the importance of cost reductions and additional funding as Microba works to improve its financial position.

Company Plans Further Cost Reductions

Microba has reduced its annualised cash operating costs by approximately US$3.24 million since June 2026, representing a reduction of more than 20%.

It plans to deliver a further US$1.94 million in annualised savings. If achieved, these measures would bring total cost reductions to more than 30% of its FY2026 cost base.

Proposed Genetic Signatures Merger and Potential Business Sale

The second tranche of the placement is linked to shareholder approvals for Genetic Signatures' proposed all-scrip merger with Microba. The two companies agreed to the proposed transaction in September 2026, with the aim of combining their diagnostics businesses.

Microba is also planning an advisory process to explore a potential sale of its UK-based Invivo Supplements business following expressions of interest from prospective parties.

About Microba Life Sciences

Microba Life Sciences is an Australian biotechnology company specialising in microbiome analysis and diagnostics. Its technology focuses on analysing microorganisms in the human gut to provide information that can support research and healthcare applications.

The company develops microbiome testing services and related products for healthcare professionals, researchers, and other customers. Its core testing business has continued to record quarterly revenue growth, although the company is also managing the financial challenges associated with restructuring and expanding its operations.

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