By Samuel Indyk
Investing.com – Omega Diagnostics (LON:ODX) shares have declined on Monday after the company confirmed that it is in discussions with certain investors and shareholders regarding a potential equity fundraising.
It was reported on Friday by the website ShareProphets.com that Omega Diagnostics was considering a “hugely discounted” placing, citing sources.
The AIM-listed company has confirmed the reports, saying market conditions remain challenging and accordingly any equity issue would be at a discount to the current share price. The firm added that any fundraising would also include an open offer to accommodate retail investors.
The news follows an announcement earlier this month where the company said there was no short-term need to raise capital. On 19th January, Omega said it had cash balances in excess of £2.5 million and an undrawn overdraft facility of £2.0 million. However, the company said it would look to raise funds to drive growth as and when appropriate.
Omega reiterated there is no immediate need to raise additional capital and that the company may choose not to proceed with the fundraising until such time as conditions are more favourable.
At 08:49GMT, Omega Diagnostics shares were trading lower by 24.4% at 8.05 pence per share.