TRU - Truscreen

[Not The Chosen One]

Novice here with shares in Truscreen and not sure whether to apply for the 5c SPP which finishes today. Seems too good to be true and I'm not familiar enough with SPP. Is it as simple as applying and hopefully getting them and then being able to sell them more or less straight away?

Thanks

[HITMAN]

Your best to read all the information on the SPP. The shares will be issued 21st May. They can be traded immediately on the exchange. The volumes traded aren’t high so there could be a flood of the market with people selling to make a quick gain. The price can drop below 5 cents. If the SPP is fully supported and then scaled back it may show the company now has funds to develop and grow, it may give investor confidence and send the share price higher. It’s only the market that will decide.

[Chippie]

I have made some of my best returns off capital raisings. Of course (or I hope) I only invest in companies that I believe are fundamentally sound enough to invest in with potential growth opportunities. Buying BLT at .7 cents in 2012 is a good example. And I see TRU as a similar opportunity but with more certainty as Cervical screening is needed rather than wanted and they already have 58 hospitals using it in China.

To be honest I also wonder if this is too good to be true. But absolutely worth at least a speculative investment for a share that has traded at more than 14 cents in the past 12 months

[Not The Chosen One]

Thanks. Will take a look at the SPP section and work my way around this site a bit more too. I didn't end up purchasing any - should have looked into it when I was first notified rather than last minute. My thinking was that I would sell a recent high performing share (ABA with 100% gain!) and use most/all of that towards the SPP. Will have to be a bit more pro active next time...

[HITMAN]

Truscreen Limited (NZX:TRU) (“Truscreen” or the “Company”) is pleased to announce that its recently closed Share Purchase Plan (SPP) has raised a total of $3,128,000. The SPP has not been scaled and the Board has resolved to place the excess acceptances of $1,128,000, under NZX Listing Rule 4.5.1. In addition, Truscreen has raised a further $615,000 through a placement to several wholesale investors, under NZX Listing Rule 4.5.1. In aggregate, TRU has raised $3,743,000 from its capital raising initiatives and will issue approximately 74.8 million New Shares at an issue price of $0.05 per share. Messrs. Chris Lawrence, Chris Horn and Tony Ho, directors of the company, participated in the SPP and placement. Truscreen Chairman Tony Ho says “Truscreen is delighted with the overwhelmingly positive support received from Truscreen shareholders to the capital raising initiatives, especially having regard to the current challenging environment. The new capital raised will enable the Company to implement its business strategy”. TRU expects that the new shares from the SPP and placement will be allotted, and holder statements sent out to shareholders on or about Thursday, 21 May. Auckland based capital markets advisory firm CM Partners advised Truscreen on the capital raising initiatives.

TruScreen Same Class Offer to be undertaken to raise a further $1.5 million Due to a number of enquiries from Truscreen shareholders wishing to take up more than their entitlement under the SPP, and third party investors wishing to participate in the capital raising initiatives, the Board has resolved to provide both existing NZ shareholders who were unable to take-up more than their maximum SPP entitlement, as well as the wider investor community, the opportunity to participate in a new same class offer to raise a maximum of $1.5 million (“New Offer”). The New Offer comprises: • A priority allocation of $1 million of new TRU shares (at an issue price of $0.05 per share) to an NZX market participant; and• A public pool of $500,000 of new TRU shares (at an issue price of $0.05 per share), which is open to both New Zealand retail and wholesale investors. In the event that oversubscriptions are received in respect of the public pool, those subscriptions will be scaled on a pro rata basis. Any shares not taken up in the priority allocation may be reallocated to the public pool.Parties who wish to participate in the public pool may now apply for shares online at https://www.truscreenoffer.co.nz/SPP/All applications under the New Offer must be received not later than 5pm on Wednesday, 3 June 2020.Accompanying this release are the following: (Click button below to view attachments) • Cleansing Statement; • TruScreen Fact Sheet; and • TruScreen Presentation.

[HITMAN]

I think it’s great they were over subscribed, so do they obviously, they've turned the over subscription into extra shares.

[Chippie]

It is good that the directors participated, that is encouraging. I always thought that $2M was not a lot of money for a company looking to expand like TRU is planning.

Rather than offering another $500K shares to the public, I would have preferred that the public buy them on Market as this is a gift to people who have not invested in TRU to date.

I got all the shares I wanted so all good

[HITMAN]

I agree Chippier, they are devaluing the existing shareholders. It seems like a bit of a money grab, the second SPP. I thought adding the over subscriptions to the their treasure chest would have been enough.

If there is further demand it should sure up the share price as they buy on the market. Instead they have just taken all those potential buyers and offered them the shares at a 40% discount.

Moving forward I was thinking the 2 million raised might not be enough to get them over the hump and into real value sales. I think having 4-5 million cash will help them a lot in their growth development, including version 3 of the device.

It'll be interesting what they do with the money over the next 12 months.

Happy directors have taken up their allocations.

[clip]

Any idea when the first lot of SPP shares will go on market, and when the subsequent lot will go on? I notice it says applications close 3rd of June - applied yesterday and money has gone from my account, however I can't find any information about when the shares will be listed/come back into accounts - in the NZX announcements or in the application process or on their website

[HITMAN]

21st May, tomorrow they are allocated and can be traded. Haven’t looked for the subsequent SPP yet.

No point buying shares at 6cps on market when the company will sell them direct for 5cps.