Genetic Technologies Limited (ASX:GTG, NASDAQ:GENE, OTC:GNTLF), a leader in guideline-driven genomics-based tests in health, wellness and serious diseases, has closed its Registered Direct Offering for gross proceeds of approximately US$2 million.
The offering involved the purchase and sale of 1 million American Depositary Shares (ADSs) at US$2.00 per ADS with each ADS representing 30 ordinary shares of the company.
In a concurrent private placement, the company has also issued unregistered warrants to purchase up to 1 million ADSs.
These warrants have an exercise price of US$2.00 per ADS, are exercisable upon issuance and will expire five years following issuance.
Use of funds
Gross proceeds from this offering were approximately US$2 million, before deducting the placement agent’s fees and other offering expenses with Genetic Technologies intending to use the net proceeds for a number of growth-related initiatives:
- To drive revenue and support sales and marketing initiatives through the recently launched digital strategy via the consumer-initiated platforms;
- To drive sales and support the commercialization of the GeneType Multi Risk test through the B2B channels with U.S. health systems and employers; and
- To expand into new markets in Europe and across South East Asia.
Cancer Risk Test
The company also intends to execute the sales and marketing to launch the 'World First' Comprehensive Hereditary Breast and Ovarian Cancer Risk Test as part of its germline genetic testing division.
Funds will also be directed to product research and development of the newly announced Comprehensive risk test as well as for other working capital and general corporate purposes.
No shareholder approval is required for the capital raising as it is undertaken in accordance with the shareholder approval granted at the company's EGM held on March 20, 2024.
H.C. Wainwright & Co. acted as the exclusive placement agent for the offering.