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- Bio-Gene Technology (BGT) has received firm commitments for a $2.4 million share placement
- The placement falls under Bio-Gene’s capital initiative to raise up to $3.9 million
- The funds will strengthen Bio-Gene’s balance sheet and fund commercial discussions, accelerate studies and additional research on product efficacy, and general working capital
- Bio-Gene develops technologies that control and work against insects and grain pests
- Additionally, Bio-Gene will launch a share purchase plan to eligible shareholders to raise up to $1.5 million
- Company shares have dropped 15.4 per cent and are trading for 16.5 cents each
Bio-Gene Technology (BGT) has received firm commitments to raise $2.4 million through a share placement to sophisticated and professional investors.
The placement falls under Bio-Gene’s capital initiative plan to raise up to $3.9 million.
Bio-Gene will use the funds to strengthen its balance sheet and fund ongoing commercial discussions, accelerate registration enabling studies, additional research on product efficacy and for general working capital.
Under the placement, the ag-tech development company will issue 15,487,742 million fully paid ordinary shares at $0.155 per share.
“I am delighted to have successfully raised these funds which will underpin the execution of our commercialisation strategy,” CEO and Managing Director, Richard Jagger said.
Bio-Gene develops technologies to address the global problems of insecticide resistance and toxicity. In particular, its Flavocide product has demonstrated significant activity against insect pests.
“All of these next steps are expected to further strengthen Bio-Gene’s value proposition for shareholders and our potential commercialisation partners,” Richard added.
To allow eligible shareholders to participate in the raise, the company is launching a share purchase plan (SPP). Under the SPP, shareholders can purchase up to $30,000 worth of fully paid ordinary shares, up to a total raising of $1.5 million.
If there is a shortfall of acceptances, the balance of the shares will be made available to sophisticated, professional and other exempt investors.
Company shares have dropped 15.4 per cent and are trading for 16.5 cents each at 1:24 pm AEST.
