BreathDx (M) Sdn Bhd, the Malaysian arm of US-based BreathDx Inc, is seeking to raise RM21 million via the issuance of Islamic redeemable cumulative convertible preference shares (RCCPS-i) to fuel its expansion across Malaysia and the broader Southeast Asian region.
The capital raising exercise is being conducted through equity crowdfunding platform AMB Connect. Proceeds will be directed toward scaling the company’s proprietary breath-based diagnostics platform, which integrates artificial intelligence with micro gas chromatography to detect diseases — including cancer — through a patient’s exhaled breath.
“Operating out of Malaysia enables us to explore diseases typically under-researched, such as dengue, Zika, and malaria,” said Chief Executive Officer Datuk Rajen Manicka. “It also positions us to tailor diagnostics to regional needs.”
According to the company, 57% of the funds raised will be allocated to equipment acquisition, research and development, regulatory compliance, staffing and reimbursements. The remaining proceeds are designated for working capital. RCCPS-i shares are priced at RM1 each, with full utilisation of funds expected within 18 months.
To underpin its long-term growth, BreathDx is implementing a three-tiered revenue model: leasing diagnostic machines to point-of-care providers including hospitals and clinics, charging per test, and monetising anonymised clinical data for third-party applications.
“Our model is designed to eliminate upfront costs for healthcare providers while generating recurring income from both diagnostics and data commercialisation,” Rajen added.
As part of its expansion roadmap, BreathDx is evaluating plans to establish a manufacturing facility in Sama Jaya, Sarawak. This initiative is intended to localise production, reduce dependency on manufacturing in China, and shield the company from tariffs imposed in key export markets such as the United States.
Valued at US$332 million by Valuing IP Sdn Bhd, BreathDx is also considering a Nasdaq listing within the next two to three years. The company believes its valuation could increase further upon completion of clinical studies currently underway with Harvard University and the US Veterans Administration, in addition to obtaining approvals from the US Food and Drug Administration and Malaysian regulatory bodies. Market expansion into Europe, India and North Asia, as well as domestic manufacturing, are also expected to contribute to future growth.
To date, BreathDx has invested over US$25 million in the research and development of its micro gas chromatography technology and holds 25 international patents.
-The Star
