Prospech (ASX:PRS) will raise about AU$1.6 million through a renounceable rights offer to eligible shareholders to buy two shares for seven shares held, at AU$0.015 per share, according to a Monday filing with the Australian bourse.

The offer price represents a 32% discount to the company's 30-day volume weighted average price, the filing said.

For every two new shares bought, eligible shareholders will also get one free option, exercisable at AU$0.04, and a three-year expiry period, the filing added.

The offer will close on Sept. 24, the filing said.

Shares of the company fell 6% in recent Monday trade.