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).
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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).