Agtech development company Bio-Gene Technology (ASX: BGT) announced it has secured commitments to raise $3.2 million through a strategic share placement to sophisticated and professional investors.
The company said the funds raised will be used to strengthen its balance sheet, enable it to expand its development activities, as well as undertake the necessary collaborative activity under the recently announced partnerships with Evergreen and Clarke.
It said specific activities include the advancement of registration enabling studies, the development of additional efficacy studies to support commercial discussions relating to new market opportunities, further advancement of manufacturing improvement programs for Qcide and Flavocide, the recruitment of expertise and general working capital.
The placement is by way of the issue of 18,937,119 fully paid ordinary shares at $0.17 per share raising a total of $3.2 million. The $0.17 per share price represents a discount of 15 per cent to the $0.20 per share closing price of Bio-Gene on 6 December.
Bio-Gene CEO and managing director Richard Jagger said, “We are delighted to have successfully raised these funds which will enable us to accelerate our development programs and support our commitments to our commercial partners by providing funding for the major registration enabling studies we wish to commence. The support from both existing and new investors represents further affirmation of our technology and strategy and complements the industry validation we have received by way of our initial partnerships and material transfer agreements.
“In addition, these funds will ensure Bio-Gene can further expand its company funded efficacy studies which will support further commercialisation discussions and continue its manufacturing development programs for Flavocide and Qcide. All of these next steps are expected to further strengthen Bio-Gene’s value proposition for shareholders and our current and future commercialisation partners."