NEW YORK (GenomeWeb) – Australian molecular diagnostics firm Genetic Technologies said on Wednesday that it has entered into a securities purchase agreement with certain institutional investors in the US.
Under the agreement, the investors will purchase approximately 1.5 million American Depositary Shares (ADS), each representing 150 of the company's ordinary shares, at a price of $.80 per ADS.
The company said it will receive gross proceeds of about $1.2 million before deducting customary offering expenses. The investors also agreed to purchase warrants to buy an aggregate of about 1,1 million ADS at an exercise price of $.80 per share. The warrants will be exercised immediately following the date of issuance and will expire five years thereafter.
Melbourne-based Genetic Technologies said it will use the proceeds for general product development and R&D, expansion in China, and to fund the development of polygenic risk tests with TGen in the US.
The company currently markets the GeneType for Breast Cancer and GeneType for Colorectal Cancer risk assessment tests, which use PCR arrays to genotype a number of cancer susceptibility loci.