Proactive Investors - Run By Investors For Investors

Genedrive welcomes BGF as a cornerstone investor as it proposes to raise £6mln

The proposed financing will "help the group drive towards demonstrable revenue growth and to advance the group's portfolio of additional tests, which if successful, are expected to increase shareholder value and enhance the strategic value of the group's diagnostics technologies"
Ten pound note
BGF has made a non-binding commitment to invest a further £1mln in new equity via the placing that is conditional, among other things, on the company raising an additional £2.5mln in new equity

Rapid diagnostics specialist genedrive PLC (LON:GDR) has raised £5.6mln, net of expenses, through a successful placing of shares and the issue of convertible loan notes.

The company said it raised gross proceeds of £3.5mln via a conditional placing of 15,217,391 shares at 23p each  – last night’s closing mid-market price – with new and existing investors. In afternoon trading, genedrive shares held steady at the 23p level.

READ: genedrive shares push higher as the rapid diagnostics specialist gears up for important year

genedrive raised a further £2.5mln through the issue of convertible loan notes to small and medium-cap backer, BGF.

The loan notes, which carry a coupon of 7%, mature on June 30, 2025 and will be convertible into genedrive shares at 28.75p a pop.

The company has also announced a proposal to raise up to a further £500,000 by way of a broker option to allow existing and other investors to participate in the fund-raising at the 23p-a-share placing price, which will be open until 6 December 2018.

The net proceeds will fund the working capital needs of the company in relation to the launch of the Genedrive HCV-ID Kit for Hepatitis C diagnosis and support projects to enhance the gross margin for this assay.

The money will also fund the company's assay development programmes in antibiotic-induced hearing loss (AIHL) and tuberculosis (mTB) and the continued development of the Genedrive system.

"The HCV market is significant with many millions of people affected by the disease in low and middle-income countries but low diagnosis rates. We have the first-to-market point-of-need molecular test, a strong commercial platform and a clear strategy to deliver revenue growth. A test for antibiotic-induced hearing loss, a first product aimed at non-LMIC markets, and the re-launch mTB provide further potential to benefit from the capabilities of our Genedrive diagnostics platform,” said David Budd, the chief executive officer of genedrive.

"Securing BGF as a cornerstone investor and the fundraising we have announced today will put us in a strong position to deliver on these opportunities," he added.

In a separate announcement, the company revealed it had £3.5mln in cash at the end of June, down from £5.1mln the year before, after posting a loss before tax of £7.8mln in the year to the end of June, versus a loss the year before of £7.6mln.

Revenue declined to £1.94mln from £2.61mln.

“Progress during the year has been positive,” Budd said, with the company accomplishing many of the objectives it had set itself at the start of the financial year.

 - Adds placing completion details, share price --  

View full GDR profile View Profile

Genedrive PLC Timeline

Related Articles

bacteria
September 25 2018
A decision on whether or not Motif can start marketing its next-generation antibiotic in the US is due by mid-February
Collagen testing
August 17 2018
Since reporting its full-year results on July 10, the AIM-listed shares have rallied over 38% in the past month to 3.65p currently, taking year-to-date gains to a third
1537236236_main-better-use.jpg
September 18 2018
The company is utilising technology and big data to tackle the growing healthcare crisis and personalise treatment options for preventative care.

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use