A Manchester-based molecular diagnostics company has revealed plans to raise more than £10m.
Genedrive, which is listed on AIM, has announced a proposed fundraising by the placing of new shares to raise up to £6m.
The company is also to make an open offer to qualifying shareholders to raise up to £4.5m.
In a statement, the business said the net proceeds of the fundraising and its existing cash resources will be directed towards “two near-term revenue opportunities” – the final development of the Genedrive COV19 ID Kit and supporting the commercial roll out of the company’s Antibiotic Induced Hearing Loss test, Genedrive MT-RNR1 ID Kit.
The money will also provide additional funding to cover the group’s other product development, commercialisation and general corporate costs until the AIHL test and GDR COV POC are expected to be able to support its overheads.
The placing is expected to take place on or around September 14.
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Peel Hunt and finnCap are acting as joint bookrunners.
Peel Hunt is acting as nominated adviser, in connection with the placing.
The company’s unaudited revenues to June 30 2021 are £700,000, split roughly equally between the DoD and the Genedrive 96-SARS-CoV-2 test.
The estimated loss for the year is £800,000 after a tax credit of £1.2m and finance income of £3.5m as a result of a gain on the conversion of loan notes.