(Alliance News) - Genedrive PLC said Tuesday it intends to raise around GBP7 million through a conditional placing, the proceeds of which will go towards supporting the development of the company's SARS-CoV-2 assay, as well as build up inventory.
The patient molecular diagnostics firm has proposed to place 8.8 million shares at a price of 80 pence per share, reflecting a 60% discount to Genedrive's closing price on Monday at 198.00 pence.
Shares in Genedrive were 12% higher at 221.00 pence on Tuesday in London.
Peel Hunt LLP and finnCap Ltd are acting a joint bookrunners for the placing.
Proceeds from the fundraising will be used to develop the SARS-CoV-2 assay, fund the scale-up of the Genedrive-96-SARS-CoV-2 test by building up inventory, fund product development and for corporate purposes.
In addition to the GBP7 million, Genedrive is also looking to raise a further GBP1 million via broker option through the issue of 1.3 million shares at the same price per share as in the placing.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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Genedrive (GDR)