- Genetic Signatures has undertaken an institutional placement that will raise $35 million
- A total of 35.7 million shares were issued at a price of $0.98 per share
- In conjunction, a share purchase plan will be made with permitted shareholders able to apply for up to $30,000 worth of shares
- Genetic Signatures is currently down 4.63 per cent with shares trading for $1.03 apiece
Genetic Signatures has successfully undertaken an institutional placement that will raise $35 million.
A total of 35.7 million new ordinary shares were issued at a price of $0.98 per share, this represents a 9.3 per cent discount to the closing price of $1.08 on Wednesday, October 23.
This placement will be issued in two phases with phase one consisting of 15.6 million shares to raise $15.3 million and phase two will issue the remaining 20.1 million shares to raise $19.7 million.
However, this is subject to obtaining shareholder approval.
The money raised will be used for the commercial expansion in the European Union and the USA, obtaining further regulatory approvals for its products, additional product development, and working capital purposes.
The placement received overwhelming support from offshore investors and domestic institutional investors.
Large global fund manager, Perennial Value Management and Regal Funds Management played a large role in the placement.
“We are delighted with the significant broadening of our institutional register and the strong continued support from our existing shareholders, with demand for the placement exceeding the funds raised,” Chief Executive John Melki said.
“Genetic Signatures is well funded to execute its commercial expansion strategy in Europe and the United States,” he added.
In conjunction with the placement, a share purchase plan (SPP) will also be made to eligible shareholders.
Under the SPP those who are permitted shareholders in Australia or New Zealand will be invited to apply for up to $30,000 of new fully paid shares.
The aim of the SPP is to raise $2 million. Genetic Signatures has ended the day down 4.63 per cent with shares trading for $1.03 apiece in a $107.1 million market cap.