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Lumos Diagnostics Holdings Ltd (ASX:LDX) is raising A$10 million through a pro rata accelerated non-renounceable entitlement offer, with the retail component underwritten up to approximately A$6 million. The offer has generated significant interest, with Tenmile Ventures Pty Ltd, a health technology investment firm and wholly owned subsidiary of Tattarang, joining as a new shareholder.
Tenmile Ventures has acquired 45 million shares, equating to a 9.3% ownership stake in Lumos. The firm plans to fully subscribe to its entitlement and act as a sub-underwriter for the offer. Upon completion, Tenmile is anticipated to become Lumos's largest shareholder.
Existing shareholder Ryder Capital Ltd also intends to fully participate in the offer and act as a sub-underwriter. The funds raised will support the completion of the FebriDx Clinical Laboratory Improvement Amendment (CLIA) waiver trial in the US, along with product development, sales and marketing efforts, general working capital, and associated offer costs.
Tenmile Ventures, one of Australia's largest private investment groups, joins Lumos's registry following a block trade with Planet Innovation Holdings Limited. After the trade, Tenmile will hold 45 million fully paid ordinary shares, representing 9.3% of Lumos's issued capital, while Planet Innovation's stake will reduce from 68 million to 23 million shares, or 4.8% of the issued capital, before new shares are issued under the entitlement offer.
Lumos CEO & MD Doug Ward expressed appreciation for Tenmile’s involvement, highlighting the alignment in vision to address unmet needs in human health and drive business growth. Gratitude was also extended to Ryder Capital for their ongoing support and to Planet Innovation for their long-term commitment.
The entitlement offer funding will facilitate the completion of the CLIA waiver study for the FebriDx point-of-care diagnostic test in the US, potentially expanding market access from approximately 18,000 sites to around 270,000 sites. This expansion is aimed at reducing antibiotic overprescription.
Lumos has made significant strides in expanding its global reach. In July 2023, the company received US FDA clearance to market its rapid point-of-care test, FebriDx®, which helps diagnose acute bacterial respiratory infections. In September 2023, Lumos secured Emergency Use Authorization and a CLIA Waiver for the ViraDx® test, which detects COVID-19, Flu A, and Flu B from nasal swabs.
These regulatory approvals will enable Lumos to scale up commercial production at its California facility in anticipation of increased demand, particularly ahead of the US flu season. The company has also expanded its strategic partnership with Henry Schein, which now distributes FebriDx® across multiple countries including the UK, Portugal, Spain, the Netherlands, the US, Belgium, Australia, and New Zealand.
