NEW YORK — Australian diagnostics firm Genetic Technologies said on Thursday that it has signed definitive agreements to sell approximately $6.6 million of its American Depository Shares (ADSs) to undisclosed institutional investors.
Through the registered direct offering, Genetic Technologies said it will sell 1.25 million ADSs, each representing 600 of its ordinary shares, at a price of $5.25 each. The offering is expected to close next week, with HC Wainwright acting as the exclusive placement agent.
Genetic Technologies said that it will use the proceeds of the offering to help launch new products in the US and Europe, to fund R&D and reimbursement studies for its polygenic risk tests, prepare a COVID-19 severity risk test, and to establish a germline genetic testing division. The firm will also use the proceeds for working capital and to fund potential acquisitions, among other things.
In late 2020, Genetic Technologies said that it been notified that it had regained compliance with the Nasdaq's minimum stockholders' equity requirement for continued listing of its ADSs after raising $16.4 million through equity offerings.