Nappy detector Simavita shakes the tin for $1.4m as cash burns
Health & Biotech
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High-tech nappy maker Simavita says it’s progressing licensing agreements with major distributors — but needs more cash to close deals.
Simavita’s AlertPLUS technology monitors wetness in nappies through a sensor printed into a diaper material — and is targeted at everyday use in adult and infants.
The company (ASX:SVA) is set to raise $1.4 million by way of unsecured convertible notes at 4c a share — and is leaving the offer open to raise another $100,000.
Funds will allow the company to move forward on pivot from direct-to-consumer sales for its incontinence-detecting technology to licensing agreements with major manufacturers.
This issue follows financing of $1.35 million by secured convertible notes at 4c in November – which was touted as a means to provide a “clear runway” for the implementation of its new strategy.
Add to that a $964,000 R&D return in October, and another $424,000 this month.
But still, the kitty is running low. Simavita reported $1.7 million cash at the end of December ahead of $1.5 million in expected spending this quarter.
Simavita told shareholders the new strategy had already saved money, but was impacting on sales receipts.
For the December half it reported $204,000 in revenue, less than half that of the previous corresponding period at $443,000.
It told the market the platform was ready for partnering with major international diaper manufacturers and funds raised would be put towards making that happen.
The shares were today trading at 2c.
Key to the company’s success is its AlertPLUS app, which continuously monitors for diaper wetness via a hyper low cost and disposable sensor embedded within a diaper.
The app automatically alerts a carer/parent when to change the diaper.