LexaGene Holdings Inc announced that it has filed and received a receipt for a preliminary short form base shelf prospectus in Canada allowing it to raise up to C$25 million.
When finalized, the company will be able to make offerings of shares, warrants, subscription receipts, debt securities, units or any combination thereof for up to 25-month period.
In a statement, LexaGene said the prospectus will provide the company with greater financial flexibility going forward.
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It relayed to shareholders, however, that it had not entered into any agreements or arrangements to authorize or offer any securities at this time and ultimately may never issue any securities under the prospectus.
LexaGene’s CEO Dr Jack Regan told investors that the company decided to file the shelf prospectus to provide “maximum flexibility” as it grows its operations in the US and Canada.
“Filing is good corporate governance and provides us the ability more readily raise capital to support LexaGene’s projected growth in the coming years,” Regan added.
The company may also use the prospectus in connection with an "at-the-market distribution" in accordance with applicable securities laws, which would permit securities to be sold on behalf of the company through the TSX Venture Exchange, it said.
To date, no agreement has been entered into with respect to such a distribution, the company added.
Beverly, Massachusetts-based LexaGene is a molecular diagnostics company that develops molecular diagnostic systems for pathogen detection and genetic testing for other molecular markers for on-site rapid testing in veterinary diagnostics, food safety and for use in open-access markets such as clinical research, agricultural testing and biodefense.
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