Skip to main content
Premium Trial:

Request an Annual Quote

Osmetech Seeks to Raise $16.3M in Private Placement

This story has been updated to reflect a correction made by the company regarding the percentage of existing share capital represented by the new shares.

NEW YORK (GenomeWeb News) – Osmetech has filed with the London Stock Exchange for a proposed private placement of shares that would raise gross proceeds of £9.8 million ($16.3 million).

The British molecular diagnostics firm has filed to place 479,800,841 new ordinary shares at 2.05p per share with certain of its current shareholders and new investors. The new shares represent 41.6 percent of the firm's existing issued share capital.

Osmetech said that institutional and other investors have conditionally agreed to subscribe for 228,056,211 shares that are being placed by investment bank Canaccord Adams. The remaining shares are being placed directly by the company with investors outside of the UK.

The firm said that as of Oct. 30, it had cash balances and equivalents of around £1,831,000 ($3 million). It added that in order to continue developing its molecular diagnostics business it requires additional capital, and it believes an equity financing rather than a debt financing is a more appropriate route.

Osmetech said that proceeds would be used to develop and obtain regulatory clearance for further tests that run on its eSensor XT-8 System. In addition, money would be spent on sales, marketing, and service personnel, as well as marketing initiatives associated with system placements and test sales. It also expends to use the funds to continue development of an advanced sample-to-answer AD-8 test system.

If Osmetech raises the full amount proposed in the placement, it said that it will have enough cash to fund its business until approximately the fourth quarter of 2010.

The company currently sells tests for cystic fibrosis carrier detection and genotyping and for warfarin sensitivity. It plans to launch tests for respiratory viral pathogens and thrombosis risk within the next year.

The Scan

Driving Malaria-Carrying Mosquitoes Down

Researchers from the UK and Italy have tested a gene drive for mosquitoes to limit the spread of malaria, NPR reports.

Office Space to Lab Space

The New York Times writes that some empty office spaces are transforming into lab spaces.

Prion Pause to Investigate

Science reports that a moratorium on prion research has been imposed at French public research institutions.

Genome Research Papers on Gut Microbe Antibiotic Response, Single-Cell RNA-Seq Clues to Metabolism, More

In Genome Research this week: gut microbial response to antibiotic treatment, approach to gauge metabolic features from single-cell RNA sequencing, and more.