Genus said 3.1mln new shares were issued to new and existing investors at a price of 2,200p per placing share.
“The proceeds will ensure balance sheet flexibility to continue to invest in the business and to take advantage of infill acquisition opportunities,” Peel Hunt analysts wrote in a note to clients.
“The raise is slightly dilutive (c3% in the short term) but should be materially accretive as the company strengthens its strategic position and breeding capacity.”
Genus’s share price is 25% off the peak it reached last July, triggered by the outbreak of African swine fever (ASF) in China.
Peel Hunt said the current share price was an attractive entry point into a high-quality business with attractive long-term growth potential combined with the transformative opportunity in gene editing. Peel Hunt maintained its 2,600p target price.
Genus was earlier this week upgraded to a ‘buy’ from a ‘hold’ rating by broker Kepler Chevreux who believes the fall in the animal genetics company’s share price on the back of fears over the outbreak of African swine fever has been overdone.
Genus shares were 5.6% down at 2,258.0p in mid-morning trade.