Proactive16 Jun 2020 16:34
Genedrive PLC (LON:GDR), the diagnostics group, has moved into a cash surplus after the Global Health Investment Fund (GHIF) converted its US$8mln bond into new shares.
At present, the bond and accrued interest are valued at US$9.46mln.
GHIF will be allotted 7.1mln new shares and £685,000 in cash to reflect the balance of accrued interest.
Following completion, Genedrive will have gross cash balances of £8.6mln and debt of £2.6mln.
A lock-up arrangement means 5.1mln of the GHIF shares are subject to an orderly marketing agreement until June 30, 2021, and the remaining 2mln cannot be sold before then.
Genedrive’s market value has rocketed in recent months as it has unveiled two diagnostic tests for coronavirus (COVID-19).
The company’s SARS -CoV2 kit was awarded a CE mark in May and is predicted by brokers to generate revenues of up to £1.5mln per week when sales start this month.
A second test for use outside of hospitals is also under development.
Shares eased 10% to 101p. In March, they were trading hands at 9p.