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Genetic Technologies Signs Deal for A$24M Equity Placement Facility

NEW YORK (GenomeWeb) – Genetic Technologies said today that it has entered into a A$24 million (US$19.4 million) standby equity placement facility agreement with investment fund Kentgrove Capital Growth Fund. 

Funds from the facility will be used to grow Genetic Technologies' lead breast cancer test, BrevaGenplus, and for general working capital. 

Under the terms of the deal, Kentgrove will provide the Australian molecular diagnostics firm with up to A$24 million of equity capital via placements over the next 24 months. The facility expires on Jan. 21, 2017. 

Genetic Technologies Chairman Malcolm Brandon said in a statement that the facility will allow the firm to continue establishing and expanding the market for the BrevaGenplus test in theUS. "Our sales and marketing infrastructure and strategy is now focused on engaging with healthcare professionals in comprehensive breast and imaging centers where we can achieve the highest throughput rates as the centers adopt this test as an important part of their breast cancer risk management programs," he said. 

BrevaGenplus is the next-generation of the firm's breast cancer test and was launched in late 2014. Late last month, Genetic Technologies said that it raised A$258,000 in a share purchase plan.