- Genetic Technologies (GTG) has received commitments from several U.S.-based institutional investors to raise US$1.8 million (roughly A$2.9 million)
- The funds will go towards introducing and distributing the company’s GeneTypes for breast and colorectal cancer products
- Additionally, the money will help the company implement its consumer-initiated testing platform
- This platform allows patients to request a testing kit for diseases such as cancer, diabetes or heart disease
- It’s designed to take the burden off primary care clinicians who are currently focused on patients during the COVID-19 crisis
- Genetic Technologies is down 16.7 per cent and shares are trading for 0.5 cents each
Genetic Technologies (GTG) has received commitments from several U.S.-based institutional investors to raise US$1.8 million (roughly A$2.9 million).
The capital raise will issue 1,028,574 American Depositary Shares (ADSs), each representing 600 of the company’s ordinary shares, at a purchase price of
$1.75 per ADS (A$0.0048) per GTG Share.
The funds will support the introduction and distribution of its new products in the United States, research and development, and the development of polygenic risk tests with the Translational Genomics Research Institute in the U.S.
On top of that, funding will be used by the company to implement its consumer-initiated testing (CIT) platform, and for working capital.
“This capital raising in such challenging market conditions is indicative of institutional interest in the United States in GTG as we continue our product commercialisation,” Managing Director and Acting CEO Dr George Muchnicki said.
Genetic Technologies develops products that assess a person’s genetic risk of contracting deadly conditions and diseases such as various cancers, diabetes and heart disease.
Earlier this year, the company began commissioning for its GeneType for Breast Cancer products and has already secured sales. Following the launch, the company reported yesterday that four patients have already been identified as high-risk for developing breast cancer.
Based on the success of its GeneType for Breast Cancer product, the company plans to launch GeneType for Colorectal Cancer.
The funds will also help to implement the CIT platform, which is essentially designed to take the burden off primary care clinicians who are currently focused on patients during the COVID-19 crisis.
The CIT platform means people can still be tested for certain diseases and assess their risk without having to see a clinician or have their tests overlooked.
The closing of the offering is expected to occur in the U.S. on or about 3 April 2020
Genetic Technologies is down 16.7 per cent and shares are trading for 0.5 cents each at 1:50 pm AEDT.