GTG raising up to $10.6m for BREVAGen expansion
Genetic Technologies (ASX:GTG) has completed the first stage of an up to $10.6 million capital raising to support further development of its BREVAGen breast cancer risk assessment test.
The company has finalised a private placement to sophisticated investors worth $2.2 million.
This will be followed by a share purchase plan worth up to $3 million and an issue of convertible notes to institutional investor Ironridge Global to raise a further US$5 million ($5.6 million). After costs, the company aims to raise up to $10.6 million.
GTG has announced plans to use the proceeds to expanding US distribution for BREVAGen, completing studies to add Hispanic and African ethnicities to its addressable US market, as well as programs aimed at increasing market awareness of the test.
Shares offered under the placement and SPP will be issued at $0.072 per share, a 19.1% discount to the 30-day volume weighted average trading price of $0.089.
“The additional funding, combined with our existing cash reserves and building recurring income streams, should provide the platform to create a vital and sustainable global molecular diagnostics company,” GTG CEO Alison Mew said.
Genetic Technologies shares were trading 10.59% lower at $0.076 as of around 1 pm on Thursday.
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