NEW YORK (360Dx) — Sienna Cancer Diagnostics announced today that it has finalized the terms of a A$5.2 million ($3.6 million) private placement and rights issue.
Melbourne, Australia-based Sienna said it will sell approximately 27 million newly issued shares at A$.06 apiece to Merchant Opportunities Fund and private investor David Williams in order to raise about A$1.6 million.
Additionally, Sienna has launched a rights issue offer under which existing shareholders will be eligible to buy one new share of the company for every three shares they currently hold at a price of A$.06 per share. Sienna said it will offer about 60 million shares, giving the offer a A$3.6 million valuation.
Sienna currently sells an antibody-based in vitro diagnostic designed to detect the presence of the hTERT component of telomerase, a biomarker that aids in the diagnosis of bladder cancer alongside standard urine cytology testing. Sienna offers the test in Australia. It is distributed in the US by StatLab, in Denmark and Sweden by Axlab, and in Switzerland by Biosystems Switzerland.
Sienna said that it intends to use the proceeds of the capital raise to fund the acquisition of complementary technologies, as well as for working capital.
"We have identified a number of complementary technology candidates for in-licensing or acquisition, and are in discussions with these parties," Sienna CEO Matthew Hoskin said in a statement. "With this capital raise complete, Sienna will be in a better position to progress these opportunities."