NEW YORK – Genomic testing firm Genetic Technologies said Friday that it had entered into definitive agreements with several investors for a registered direct stock offering that will raise A$5 million (US$3.5 million).
The investors agreed to buy 3,846,155 American Depositary Shares at A$1.30 per share. Each ADS represents 600 ordinary shares of the company. The offering is expected to close on Feb. 7, and H.C. Wainwright is acting as the exclusive placement agent.
The Australia-based firm said it plans to use some of the offering's proceeds to support its US and European commercialization of its GeneType Multi Risk test for cancers, coronary artery disease, and type 2 diabetes and to launch a comprehensive hereditary breast and ovarian cancer risk test. Other expenses funded by the offering include leveraging the firm's relationship with Qiagen to create new market opportunities, funding research and development, increasing sales and marketing efforts focused on consumer-initiated testing, and providing working capital and money for general corporate uses.