19th Jun 2020 10:56
(Alliance News) - Omega Diagnostics Group PLC on Friday said it has raised gross proceeds of GBP8 million via a "heavily oversubscribed" share placing and subscription.
The AIM-listed medical diagnostics company said it issued 20.0 million shares at a price of 40 pence each to both new and existing institutional investors. It also plans to raise up to an additional GBP3 million from up to 7.5 million new shares in an open offer at the same price.
The issue price represents a discount of 27% to the closing mid-market price of 55p on Thursday.
Omega Diagnostics shares were trading 11% lower on the day Friday at 48.77p each, giving it a market capitalisation of GBP72.8 million.
The net proceeds of the fundraising - amounting to between GBP7.5 million and GBP10.5 million depending on the take up of the open offer - will be used to exploit opportunities the company currently has with Covid-19 testing, to scale up manufacturing, to undertake work to improve the margin of its Visitect CD4 products and to expand its lateral flow product portfolio with products which are complementary to its Visitect CD4 products.
"The fundraising will allow Omega to capitalise on the current opportunities it has regarding Covid-19 and build a strong position in the global health diagnostic market by using its existing skill set and experience with lateral flow devices," said Chief Executive Colin King.
"Furthering these opportunities will allow the company to continue delivering on its mission to improve human health and well-being through innovative diagnostic tests and global partnerships," added King.
By Evelina Grecenko; [email protected]
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