MELBOURNE - Genetic Technologies Limited (ASX:GTG; NASDAQ:GENE), a company specializing in genomics-based tests for health and serious diseases, has made public its definitive agreement for a registered direct offering of American Depositary Shares (ADSs) and concurrent private placement of warrants. The transaction is set to close around April 22, 2024, given customary closing conditions are met.
The offering includes the sale of 1 million ADSs, each representing 30 ordinary shares at $2.00 per ADS. Simultaneously, the company will issue warrants in a private placement, allowing the purchase of an equivalent number of ADSs at the same price, exercisable immediately and expiring five years post-issuance.
The gross proceeds are expected to reach approximately $2 million before deductions for the placement agent's fees and other related expenses. H.C. Wainwright & Co. is serving as the exclusive placement agent for the offering.
Genetic Technologies intends to allocate the net proceeds to various strategic initiatives. These include driving revenue and supporting sales and marketing efforts via consumer-initiated platforms, commercializing the GeneType Multi Risk test through business-to-business channels with U.S. health systems and employers, expanding into new markets in Europe and South East Asia, launching a comprehensive hereditary breast and ovarian cancer risk test, funding product research and development, and covering general corporate purposes.
The securities in this offering are backed by a shelf registration statement filed with the U.S. Securities and Exchange Commission (SEC) on December 20, 2023, and declared effective on January 4, 2024. The ADSs, excluding the warrants and the ADSs underlying the warrants, are being offered pursuant to this registration statement. The final prospectus supplement and accompanying prospectus will be filed with the SEC and made available on its website.
The issuance of warrants in the private placement is pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended, and Regulation D promulgated thereunder. These warrants, along with the ADSs underlying them, have not been registered under the Securities Act or any state securities laws and are therefore subject to restrictions on their offer and sale within the United States.
This announcement is based on a press release statement from Genetic Technologies Limited.
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