- Genetic Technologies (GTG) has entered into a conditional agreement to procure US$6.6 million (around A$8.58 million) via an institutional share placement
- All up, 1.25 million American Depositary Shares (ADS’s), representing 600 of the company’s ordinary shares, are set to be issued as part of the placement
- According to GTG, the proceeds will go towards advancing the company’s operations in the U.S. and Europe as well as product research and development
- GTG shares have rocketed up 33.3 per cent on the back on the announcement, trading at 1.2 cents each
Genetic Technologies (GTG) has entered into a conditional agreement to procure US$6.6 million (around A$8.58 million) via an institutional share placement.
Several undisclosed institutional investors have entered into the agreement for the purchase and sale in a registered direct offering of 1.25 million American Depositary Shares (ADS’s).
Each ADS represents 600 of the company’s ordinary shares, at a
purchase price of US$5.25 (A$0.01125) per share, to raise US$6.56 million (roughly A$8.58 million.
According to GTG, the proceeds from the raise are set to be used in the introduction and distribution of its new products in the United States and
Europe, product research and development, and preparation for its COVID-19 severity risk test.
The securities described above are being offered by the company pursuant to a “shelf” registration statement previously filed with the U.S. Securities and Exchange Commission, which was granted on March 23, 2020.
The offering is expected to close on or about January 25, subject to the satisfaction of conditions.
GTG shares have rocketed up 33.3 per cent on the back on the announcement, trading at 1.2 cents each market close.