NEW YORK (GenomeWeb News) – Australian genetic test development firm Genetic Technologies said today it has completed a financing round that raised A$11.7 million (US$12.7 million).
The funds were raised through a private placement of 60 million new shares at A$.195 per share to institutional and private investors in Australia and the US. The offering was oversubscribed and 12 new institutional investors participated in the placement, Genetic Technologies said.
Proceeds will be used to fund "acquisition growth" in the molecular diagnostics field with a particular focus on women's cancer and management of the disease. The company also will use funds to market its BrevaGen breast cancer risk test in the US. The company launched the test in the US in June through its North American division, Phenogen Sciences.
The company said that the placement price represented a 12 percent discount to the 30-day volume-weighted average price prior to its request to the Australian Stock Exchange on July 12 to halt trading of its shares. On that day, as the company was in the midst of reviewing its capital management program and plan to raise equity capital, the company's stock rose sharply.
Genetic Technologies has said it does not know the reason for the share price spike.
The placement price also represents a premium to the 52-week volume-weighted average price of the firm's shares of A$.151, it said.