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Genetic Technologies Issues $5M Convertible Note to Ironridge

NEW YORK (GenomeWeb News) – Genetic Technologies said yesterday that it has issued a $5 million redeemable convertible note to Ironridge BioPharma, a division of institutional investor Ironridge Global IV, Ltd.

The Melbourne, Australia-based molecular diagnostics firm said that it as received A$5.6 million (US$5 million) from Ironridge in exchange for the note. The firm previously said that the notes issued to Ironridge would be convertible into new Nasdaq-traded American Depository Receipts at a fixed price of US$3.00 per ADR.

In Tuesday morning trade on the Nasdaq, Genetic Technologies' ADRs were trading up nearly 3 percent at US$1.59.

"The funds raised from the note, together with the net proceeds from the recently completed private placement and share purchase plan, adequately position the company with resources necessary to expand its US operations and continue the growth of its flagship test Brevagen," Genetic Technologies Chairman Mal Brandon said in a statement. "In addition, the funds will be used to complete studies that will add new ethnicities to increase the size of the available market and improve reimbursement performance."

Brevagen is the firm's flagship non-familial breast cancer risk assessment test.