Insights

Why the Rhythm Biosciences (ASX:RHY) share price is flying higher today

Capital raisings can fund new product developments and help fuel company growth plans
The post Why the Rhythm Biosciences (ASX:RHY) share price is flying higher today appeared first on The Motley Fool Australia. –

The Rhythm Biosciences Ltd (ASX: RHY) share price is charging higher in afternoon trade, up 7% to $1.21 per share.

Below we take a look at what’s driving investor interest in the ASX medical diagnostics technology company.

What did Rhythm announce?

The Rhythm Biosciences share price is gaining after the company reported it had successfully completed its non-renounceable pro-rata rights issue to raise $4.3 million, before costs.

While Rhythm set out to raise $4.3 million, it said actual subscriptions – including “entitlements, additional shares applied for, and letter of commitments” – totalled $12.05 million.

With actual subscriptions some 280% more than Rhythm was seeking, it said its share registry will return funds to unsuccessful applicants “as soon as practicable”.

As interest ran stronger than anticipated, the company said it will now offer a small “heavily scaled back placement”. This will select sophisticated and other exempt investors who had provided commitment letters for the previous offer.

Up to 1.5 million shares will be issued at a price of 85 cents per share to raise $1.28 million before costs. Rhythm said participants will also be offered 2 varieties of attaching, unlisted options.

John Hancock, who cornerstoned the placement, said: “The innovative ColoSTAT product, developed from research by the CSIRO and Rhythm, has the potential to be a global game-changer in the early mass-market screening for colorectal cancer.”

Commenting on the offer, Rhythm’s CEO, Glenn Gilbert said:

I’m pleased that the offer was strongly supported by existing shareholders, alongside the board and myself, further demonstrating our alignment. Coupled with an R&D tax incentive refund, expected shortly, the company is well funded to execute on our development and commercialisation plans outlined in our FY22 strategic plan.

Rhythm Biosciences share price snapshot

The Rhythm Biosciences share price has gained an eye-popping 991% over the past 12 months. Over that same time, the All Ordinaries Index (ASX: XAO) is up 27%.

Over the past month, Rhythm’s shares are up 24%.

The post Why the Rhythm Biosciences (ASX:RHY) share price is flying higher today appeared first on The Motley Fool Australia.

Should you invest $1,000 in Rhythm Biosciences right now?

Before you consider Rhythm Biosciences, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Rhythm Biosciences wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Why the Aerometrex (ASX: AMX) share price has rocketed 20% in a month
5 ASX shares under $10 that have more than doubled in the past year

Woolworths (ASX:WOW) share price lower after selling stake in meal box company
Why the IGO (ASX:IGO) share price is slipping today
Strike Energy (ASX:STX) share price lifts on project update

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!