Bio-Gene Technology (ASX:BGT) secures $1.5m via placement to new shareholder family

• Agtech development company Bio-Gene Technology (BGT) completes a strategic placement to a new shareholder family for $1.5 million, via issue of 7.5 million ordinary shares at 20 cents per share
• The company believes the placement further strengthens Bio-Gene’s balance sheet and enables funding of its operations
• This includes progression of major registration enabling studies to support Bio-Gene’s commercial partners and completion of additional efficacy studies to support commercial discussions relating to new market opportunities
• Funds will also be used to further advance Bio-Gene’s manufacturing improvement programs for its beta-triketones products
• BGT shares were down 5.36 per cent, trading at 26.5 cents

Agtech development company Bio-Gene Technology (BGT) has completed a strategic placement to a new shareholder family for $1.5 million.

The placement issues 7.5 million ordinary shares at 20 cents per share. The group’s share price on closing yesterday was 28 cents, while one week ago shares closed trade at 22.5 cents.

The company believes the placement further strengthens Bio-Gene’s balance sheet and enables funding of its operations, including progression of major registration enabling studies to support Bio-Gene’s commercial partners and completion of additional efficacy studies to support commercial discussions relating to new market opportunities.

“We were initially approached by this [high net worth] family with strong interest in [Bio-Gene’s] advancements to date and future opportunities,” says Richard Jagger, CEO and Managing Director of Bio-Gene.

“The support from a significant new investor represents further affirmation of our technology and strategy and complements the industry validation we have received by way of our initial partnerships and material transfer agreements.

“All of these next steps are expected to further strengthen Bio-Gene’s value proposition for shareholders and our current and future commercialisation partners”.

Funds will also be used to further advance Bio-Gene’s manufacturing improvement programs for its beta-triketones products, which have demonstrated insecticidal activity (e.g. kill or knock down insects) via a novel mode of action in testing performed to date.

This platform may provide multiple potential new solutions for insecticide manufacturers in applications across crop protection and storage, public health, consumer applications and animal health

BGT shares were down 5.36 per cent, trading at 26.5 cents at 11:30 am AEDT.