NEW YORK (GenomeWeb) – Australian molecular diagnostics firm Genetic Signatures announced today that it has signed agreements to raise A$14 million ($10.6 million) through the sale of 29.8 million new shares to institutional investors.
The placement was priced at A$.47 per share — nearly an 8 percent discount on the closing price of Genetic Signatures' stock on Aug. 30 and a nearly 10 percent discount on its 30-day volume weighted average share price. The company went public on the Australian Stock Exchange last year.
The stock placement will occur in two tranches, the first of which will consist of 10.9 million shares to raise A$5.1 million and will take place on Sep. 8. The second tranche will consist of 18.9 million shares to raise A$8.9 million, but is subject to shareholder approval at a meeting scheduled for early October.
Genetic Signatures said that it will use the proceeds of the stock placement to expand its commercial operations in Australia, the EU, and the US, as well as to obtain additional regulatory approvals for its products, advance its R&D efforts, and for working capital purposes.
As reported by GenomeWeb in July, Genetic Signatures has been aiming to gain US Food and Drug Administration approval for its tests, following the recent establishment of a US management team.
In conjunction with the placement, the company is offering a share purchase plan to eligible investors in Australia and New Zealand, who may subscribe for up to A$15,000 of new ordinary shares. This plan is capped at A$1 million.