Genetic Technologies Secures A$20 Million Equity Placement Facility
August 08 2018 - 5:30AM
Genetic Technologies Limited (ASX: GTG; Nasdaq: GENE, “Company”), a
diversified molecular diagnostics company embracing blockchain
technologies across genomic testing platforms, is pleased to
announce that it has entered into a A$20 million Equity Placement
Facility (the “Facility”) with the Kentgrove Capital Growth Fund
(“Kentgrove Capital”), an investment fund managed by Kentgrove
Capital Pty Ltd, a Melbourne-based investment management firm, to
strengthen the Company’s funding position.
Under the Facility, Kentgrove Capital may
provide the Company with up to A$20 million of equity capital in a
series of individual placements of up to $1 million (or a higher
amount by mutual agreement) over the next 20 months. Proceeds from
the Facility will be used for general working capital purposes and
to fund the Company’s activities as it seeks to:
- commercialise existing R&D
capabilities, IP and introduce an enhanced BREVAGenplus breast
cancer risk assessment test and a colon cancer risk assessment
test;
- progress development of a suite of
genetic screening tests targeting both cancer and non-oncological
diseases utilising the latest technology and platforms, and
- explore and capitalise on
Blockchain opportunities in the medical and biotech
industries.
Drawdowns under the Facility occur based on
terms set by the Company, including the timing, drawdown amount and
minimum issue price.
Commenting on the Facility, Genetic
Technologies’ Chairman, Dr Paul Kasian said: “We are delighted to
have signed the A$20 million Facility with Kentgrove Capital.
Subject to the terms outlined below, the Facility will assist the
Company with its ongoing funding requirements as it seeks to
develop a range of risk prediction tests that are designed to
assist in the early detection of cancer and help physicians improve
patient outcomes. Blockchain technology presents a unique
opportunity for the Company to further contribute to the
advancement of cancer research.”
Key terms of the Equity Placement Facility
- Facility amount of up to A$20,000,000.
- Maturity date 7 April 2020 (20 months from date of
execution).
- Genetic Technologies may undertake multiple placements under
the Facility, up to the maturity date.
- For each new placement, Genetic Technologies determines the
time period of the placement, the maximum amount of the placement
(up to A$1 million, or an amount equal to the total number of
collateral shares (defined below) on issue multiplied by the
minimum issue price, or a higher amount by mutual agreement) and
the minimum issue price.
- For each new placement, shares are issued at a 4.5% discount to
a volume weighted average price (VWAP) of the shares traded by
Kentgrove Capital over the period of the placement, but cannot be
less than the minimum issue price determined by Genetic
Technologies.
- The issuance of shares under the Facility is required to be in
compliance with ASX Listing Rule 7.1. Initial drawdowns under the
Facility may be made within the Company’s current placement
capacity. Shareholder approval in relation to the balance of the
Facility may be sought at a General Meeting as required.
- The provision of funding by Kentgrove Capital under the
Facility is subject to a number of conditions, including that the
market price be no lower than the minimum issue price set by
Genetic Technologies, and other conditions customarily included in
facilities of this nature.
- An upfront establishment fee satisfied by the issue to
Kentgrove Capital of 8,833,100 shares and 12,500,000 3-year options
with an exercise price per option of $0.0153.
- 100,000,000 collateral shares will be issued to Kentgrove
Capital on execution as security for the Facility. Upon termination
or expiration of the Facility, any outstanding collateral shares
will be, at the Company’s election, sold by Kentgrove Capital and
the proceeds returned to the Company (less a discount of 4.5%) or
bought back by the Company for a nominal figure.
- Either the Company or Kentgrove Capital may terminate the
Facility, by giving 14 days' notice, other than during the first 90
days of the Facility during which it may only be terminated with
cause, in accordance with the termination provisions as defined
within the Facility.
- Kentgrove Capital has given an undertaking to the Company that
it will not, during the 3 months following the execution of the
Facility, exercise the establishment options or dispose of the
establishment fee shares.
Further details regarding the Facility will be provided in the
prospectus required to be lodged by the Company in conjunction with
the Facility
FOR FURTHER INFORMATION PLEASE
CONTACT
Dr
Paul KasianDirector & Interim CEOGenetic Technologies
Limited+ 61 3 8412 7000 |
|
Jason Wong (USA)Blueprint Life Science Group+1
(415) 375 3340, Ext. 4 |
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About Genetic Technologies Limited
Genetic Technologies is a diversified molecular
diagnostics company embracing blockchain technologies across
genomic testing platforms. GTG offers cancer predictive testing and
assessment tools to help physicians proactively manage patient
health. The Company’s lead product, BREVAGenplus®, is a clinically
validated risk assessment test for non-hereditary breast cancer and
is first in its class. For more information, please visit
www.brevagenplus.com and www.phenogensciences.com.
Genetic Technologies is developing a pipeline of
risk assessment products including a novel colorectal cancer (CRC)
test. For more information, please visit www.gtgcorporate.com
About Kentgrove Capital
Kentgrove Capital is an Australian based
investment management firm with an objective of generating strong
returns for investors over the medium and long term. Kentgrove
Capital invests in equities across all industries with a primary
strategy to invest in companies they consider to be significantly
undervalued and have high growth potential.
Safe Harbor Statement
Any statements in this press release that relate
to the Company's expectations are forward-looking statements,
within the meaning of the Private Securities Litigation Reform Act.
The Private Securities Litigation Reform Act of 1995 (PSLRA)
implemented several significant substantive changes affecting
certain cases brought under the federal securities laws, including
changes related to pleading, discovery, liability, class
representation and awards fees. Since this information may involve
risks and uncertainties and are subject to change at any time, the
Company's actual results may differ materially from expected
results. Additional risks associated with Genetic Technologies'
business can be found in its periodic filings with the SEC.
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