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LexaGene Gets C$6.5M Investment From Meridian LGH

NEW YORK – Molecular diagnostics company LexaGene said on Tuesday that it has raised C$6.5 million ($5.0 million) in a private financing from Meridian LGH. 

The first tranche of the investment closed on Tuesday and is comprised of 13,115,725 units of the company at C$.35 per unit, for gross proceeds of C$4.6 million. The second tranche will consist of 5,384,275 units at the issue price, for gross proceeds of C$1.9 million and will close upon the clearance of a personal information form filed by the investor. Each unit includes one common share and one common share purchase warrant, with each warrant entitling the holder to purchase one common share of the company for a period of three years at the price of C$.45.

Upon closing, Meridian will hold approximately 13 percent of the issued and outstanding common shares of LexaGene. The securities issued will be subject to a four-month hold period, in accordance with Canadian securities laws, and closing of the deal is subject to final approval by Canadian stock exchange TSX Venture Exchange.

LexaGene said it plans to use the funds to purchase inventory to manufacture more of its molecular MiQLab systems, as well as to support sales, marketing, and continued research and development.

The firm's RT-PCR MiQLab pathogen detection instrument facilitates the use of customizable syndromic panels that can look for 27 targets. The firm offers a veterinary medicine test and intends to seek 510(k) clearance from the US Food and Drug Administration for broad panel pathogen testing.