New Zealand supplier Rua Bioscience is aiming to raise up to NZ$2.8 million (A$2.25m) as it looks to turn commercial momentum into “sustained revenue growth”.
The company said it requires the funds to buy additional products to meet market demand and for general working capital.
The renounceable rights issue is available for existing shareholders at NZ$0.025 per share.
Rua generated revenue of NZ$2.9m (A$2.4m) in FY 26, up from $1.9m the previous year, and reported a loss before tax of $3.36m (A$2.7m), a 3% improvement on FY25.
“FY26 marked an important period of meaningful commercial progress for Rua [and] our export-led strategy is delivering tangible results,” it said.
“We have strengthened our position in established markets and opened important new growth pathways, demonstrating the increasing international demand for high-quality New Zealand-grown medicinal cannabis.”
In spruiking the offer to investors, Rua highlighted a previously announced UK sales and distribution agreement with “one of the world’s leading medical cannabis companies” that could generate NZ$10m over two years.
Rua said the deal – its largest to date – provides “commercial validation” of its export strategy which is founded on “differentiated New Zealand genetics, high-quality cultivation and access to established international markets”.
“The next phase for Rua is to convert this commercial momentum into sustained revenue growth,” it said. “Doing so requires investment in inventory and working capital to meet increasing customer demand.”
If the full $2.8m is raised – coupled with proceeds from the sale of its Gisborne manufacturing facility – the company should become self-sustainable, it said.
The rights offer closes on October 15.