Rhythm Biosciences (ASX:RHY) received firm commitments to raise AU$3.8 million through a placement of 41.7 million new shares at AU$0.09 apiece to existing and new institutional, professional, and sophisticated investors, according to a Monday filing with the Australian bourse.

The offer price is a nearly 25% discount to the stock's 15-day volume-weighted average price, the filing said.

Proceeds will be used for research and development activities, commercialization of products, and working capital, the filing added.

Shares of the company rose nearly 5% in recent Monday trade.