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Genedrive – Shareholders Give Company Strong Support In Funding Rescue

The point of care pharmacogenetic testing company Genedrive (LON:GDR) appears to have been successful in it urgently required funding.

On Thursday 9th May the group announced that it was seeking £6.0m of fresh funds to continue its development work.

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Without such funding it warned that it effectively had only a few weeks left of available capital to pay its way ahead.

Sudden Requirement

The sudden requirement for new funds was declared by way of a Firm Placing for £168,000, a Conditional Placing for £1.9m, with the balance needed to be raised through a £2.03m Open Offer and around £1.89m through an Offer by REX, the Peel Hunt platform.

Funding Success

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This morning the Manchester-based company stated that it had received a massive support from 94.4% of its shareholders in its Open Offer, which was impressive.

In total some 388.83m new shares will be issued at 1.5p each, to raise net proceeds, after expenses, of around £5.47m.

CEO James Cheek stated that:

We are delighted with the response from our retail shareholders and other investors to this financing which will enable the Company to further drive market penetration and sales of its MT-RNR1 test and its CYP2C19 test whilst also progressing our U.S. regulatory plans for our MT-RNR1 test. 

Nearer term we await NICE’s final decision on the recommendation for our CYP2C19 test which is due on 10 July 2024 and we are very encouraged by the ongoing performance of this test in the DEVOTE programme as announced by the Company on 21 May.”  

Before the market opened this morning the shares were standing at 1.75p.

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