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Yourgene to Acquire Coastal Genomics for up to $13.5M, Raises £15M in Stock Offering

This article has been updated with new information about Yourgene's stock offering.

NEW YORK – Yourgene Health said on Tuesday that it has agreed to acquire Coastal Genomics, a sample prep technology company based in Vancouver, British Columbia, for up to $13.5 million.

Yourgene plans to pay an initial $3 million in cash and $2.5 million in equity, and a contingent consideration of up to $8 million in cash and equity.

Coastal Genomics owns the Ranger gel electrophoresis technology to collect specific DNA target sizes, with primary applications in noninvasive prenatal testing and oncology. Last year, the company had $600,000 in unaudited revenues, a 25 percent increase over the previous year.

Yourgene said it spent more than two years evaluating Coastal Genomics' technology under a 2018 partnership and has already embedded it into two of its products, Iona Nx NIPT Workflow and Sage 32plex.

Yourgene also said on Wednesday that it has raised £16.2 million in gross proceeds, or £15 million ($17 million) in net proceeds in a stock offering. The company issued 95 million new ordinary shares at 17 pence per share in the oversubscribed offering. The price was about a 2.9 percent discount to the 17.5 pence closing middle market price of Yourgene's shares on Aug. 3.

Nplus1 Singer Capital Markets was the sole bookrunner for the offering.

The stock offering will fund the initial cash payment for the Coastal Genomics acquisition and be used for general corporate expenses and working capital. Yourgene may also use additional funds to accelerate its commercial activities, including new products and services such as the Iona Nx NIPT workflow and its COVID-19 testing capacity. It plans to use any excess funds to support additional acquisitions.

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