Cleo Diagnostics (ASX:COV) raised AU$5 million via a placement of 8.3 million shares at AU$0.60 per share, to institutional investors and existing unrelated shareholders, according to a Thursday filing with the Australian bourse.

The offer price is an 8.4% discount to the company's 15-day volume weighted average price, the filing said.

The company will also issue 833,333 new options, at AU$0.90 each, expiring three years from the date of issue, the filing added.

The funds will be used to launch the company's ovarian cancer test in the US, provide working capital, and for general corporate purposes, the company said.

The placement is expected to settle on Dec. 24, the company said.

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