Company Update (NASDAQ:GENE): Here’s Why Shares of Genetic Technologies Limited (ADR) Are Tanking 36% Thursday
Genetic Technologies Limited (ADR) (NASDAQ:GENE) shares lost most if its recent gains today, after the molecular diagnostics company announced that it has entered into a definitive agreement with U.S. institutional investors, pursuant to which the investors have agreed to purchase an aggregate of 4,800,000 American Depositary Shares (“ADSs”), each representing one hundred and fifty (150) of the Company’s Ordinary Shares, at a weighted average price of $1.25 per ADS. The Company will receive gross proceeds of approximately USD 6.0 million, before deducting customary offering expenses.
The offering is expected to close on or about December 6, 2016, subject to satisfaction of customary closing conditions.
The funds raised under the Financing will be used to support the Company’s medium-term capital requirements and, together with existing cash reserves, will assist to facilitate the Company’s expansion requirements in relation to its breast cancer risk test, BREVAGenplus,the development and commercialisation of a Colorectal cancer (CRC) risk assessment test, as recently announced and for general working capital purposes.
Genetic Technologies shares are currently trading at $1.41, down $0.78 or -36% in
Genetic Technologies Ltd. is a molecular diagnostics company that offers predictive testing and assessment tools to help physicians proactively manage women’s health. Its product, BREVAGenplus, is a clinically validated risk assessment test for non-hereditary breast cancer. The company was founded on January 5, 1987 and is headquartered in Fitzroy, Australia.