As we reported earlier, Lumos Diagnostics Holdings Ltd (ASX:LDX, OTC:LDXHF) is raising A$10 million via a pro rata accelerated non-renounceable entitlement offer, with the retail component underwritten up to approximately A$6 million.
The raise has already attracted heavy interest, with the company welcoming Tenmile Ventures Pty Ltd, a dedicated health technology investment business and wholly owned subsidiary of Tattarang, to the registry.
Tenmile Ventures has acquired 45 million shares, representing a 9.3% shareholding in LDX, and intends to subscribe in full for their entitlement and act as a sub-underwriter to the entitlement offer.
Following the completion of the offer, Tenmile is expected to become the largest shareholder of LDX.
Existing long-term shareholder Ryder Capital Ltd also intends to subscribe in full for their entitlement and is acting as a sub-underwriter to the entitlement offer.
Money raised will be used towards the completion of the FebriDx Clinical Laboratory Improvement Amendment (CLIA) waiver trial in the US, product development, sales and marketing activities, general working capital and costs of the offer.
Read more about the offer: Lumos Diagnostics eyes up to A$10 million in entitlement offer
Vision aligns with Tenmile Ventures’ aims
Tenmile is one of Australia's largest private investment groups. It joins LDX’s register following a block trade with Planet Innovation Holdings Limited.
Upon settlement of the block trade, Tenmile will hold 45 million fully paid ordinary shares, representing 9.3% of Lumos' issued capital.
Planet Innovation's shareholding will decrease from 68 million to 23 million shares, equating to 4.8% of the company's issued capital, prior to the issuance of new shares under the Entitlement Offer.
“We are honoured to welcome an investor of Tenmile’s calibre to Lumos," Lumos CEO & MD Doug Ward said. "We are strongly aligned in our vision to address unmet needs in human health and look forward to working together to do this while driving the growth of our business.
"We also thank Ryder Capital, a longstanding and highly engaged shareholder, for their ongoing support.
“In parallel, I would like to extend gratitude to Planet Innovation for their long-term support of Lumos. We look forward to continuing our important relationship with Planet Innovation as a key supplier and long-term shareholder.
“The funding under this entitlement offer will underpin our efforts to complete the CLIA waiver study for our FebriDx point-of-care diagnostic test in the US.
"Achieving CLIA waiver status for FebriDx is expected to enable label extension in the US - from the current, moderate-complex label - to include CLIA waived settings.
"This would greatly expand our market opportunity for FebriDx in the US from around 18,000 sites to approximately 270,000 sites.
"Recognizing the important role FebriDx can play in reducing antibiotic overprescription, we are aiming to complete the CLIA waiver study ahead of the 2025 US flu season.”
Lumos expands global reach
Lumos received US FDA clearance in July 2023 to market its rapid point-of-care test, FebriDx®.
This test aids healthcare professionals in diagnosing acute bacterial respiratory infections and distinguishing them from non-bacterial causes in urgent and emergency settings. In September 2023, Lumos further enhanced its diagnostic portfolio by obtaining Emergency Use Authorization and a CLIA Waiver from the FDA for its ViraDx® test.
ViraDx® detects COVID-19, Flu A, and Flu B from nasal swab samples, delivering results in 15 minutes.
These regulatory clearances allow Lumos to ramp up commercial production at its California facility to meet anticipated demand, particularly ahead of the flu season in the United States.
Additionally, Lumos expanded its strategic partnership with Henry Schein (NASDAQ:HSIC), a global healthcare solutions provider.
As of July 2024, Henry Schein distributes FebriDx® across the United Kingdom, Portugal, Spain, the Netherlands and the United States. More recently, Belgium, Australia and New Zealand have also been added to the distribution network.