Rua is a New Zealand pharmaceutical company that is aiming to be a leading producer of cannabinoid derived medicines. The Company was established in 2017 in part to support local economic development in the Tairāwhiti (East Coast) region, and is a pioneer in the New Zealand medicinal cannabis sector. It was the first company in New Zealand to obtain a licence to cultivate cannabis for research purposes and the Company’s co-founder was actively involved in both the establishment of the key industry association and the development of the regulatory framework that is now in place to govern the sector. Rua will operate in the research, cultivation, extraction and manufacturing parts of the medicinal cannabis supply chain.
The following information has been extracted from Rua Bioscience Limited's half year results, released on 28 February 2025:
Financial Results
The Group reported a net loss before tax of $1,802,255 for the period ended 31 December 2024 (HY25) which included a one-off cost related to capital raise of $158,617. This result compares to a loss of $10,851,830 in the prior corresponding period, which included a goodwill impairment of $8,253,135, and other one-off impairments of $356,800. When normalising for these one-off costs, the underlying result represents an improvement of $464,209 over the prior corresponding period.
The net cash outflow from operating activities was $1,942,997 down 9% from $2,131,828 in the prior corresponding period. This improvement is attributed to continued focus on improvement of our capital-light operating model, particularly outsourcing commercial manufacturing.
During the period the company raised further capital to fund the growth in sales. The company undertook a placement of shares to participating shareholders of $150,000 and a pro-rata rights offer to all shareholders which raise $1,280,526. In conjunction with a loan of $250,000, and after associated costs, the company received cash of $1,591,088 during the period. In addition, we have received a total of $320,250 as part of the short fall applications to the capital raise.
During the period, the company undertook to sell the Rua manufacturing assets in line with the strategy to outsource manufacturing. Whilst a binding offer was received, the purchasers did not complete on the sale and the Board subsequently sought legal advice. The company is actively pursuing another purchaser.
The Board are aware though, that more funding will be required in the coming months to fund the growth in revenue into the key markets. We are working with key shareholders to facilitate capital raising efforts.
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