Genetic Technologies (ASX:GTG) announces US$6.56M Direct Offering, shares jump ~33%

A diversified molecular diagnostics player, Genetic Technologies Limited (ASX:GTG; NASDAQ:GENE) has entered into agreements with a number of institutional investors to purchase and sell in a registered direct offering of 1.25 million ADSs (American Depositary Shares).

©Kalkine Group 2020

The key highlights from the offering include-

  • Each American Depositary Share represents 600 ordinary shares of GTG at a price of A$0.01125 per share, or US$5.25 per ADS.
  • The offering is anticipated to close on or around 25 January 2021 and is subject to the satisfaction of specific terms and conditions.
  • The proceeds from this offering are anticipated to be ~US$6.56 million, before deduction of the fees of placement agent and other offering costs payable by the Company.

Use of funds: Genetic Technologies anticipates using the net funds:

  • To support the introduction as well as the distribution of its new products in the US and Europe.
  • For R&D of general products and polygenic risk tests reimbursement studies.
  • For consumer-initiated testing platforms implementation and planning for COVID-19 Severity Risk Test.
  • To introduce the germline genetic testing division.
  • For working capital and potential acquisitions.

On 22 January 2021, GTG shares were trading at A$0.012, up by 33.333% (at AEDT 01:41 PM).

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