Lumos completes placement and launches share purchase plan

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Lumos Diagnostics (ASX:LDX) says it has received firm commitments from institutional investors to raise approximately $4.75 million in proceeds from a placement.

The company said the placement would result in the issue of approximately 67.9 million new fully paid ordinary shares at $0.07 per share. The issue price represents an 18.6 per cent discount to the last closing price on 5 July and a 25.7 per cent discount to the five-day volume weighted average share price on 5 July.

Lumos says it will also offer eligible shareholders the opportunity to participate in a share purchase plan (SPP).

It said eligible shareholders would be entitled to apply for up to $30,000 of new fully paid ordinary shares at the same issue price as the placement to raise up to an additional $4.75 million.

Lumos said proceeds are intended to be used to buy back outstanding convertible notes and provide general working capital.

“We are extremely grateful for the strong support we have received from our key Institutional shareholders for this raise, and are delighted to be able to offer our shareholders the ability participate in this next stage of growth for Lumos on the same terms through a Share Purchase Plan,” said CEO Doug Ward.

“Lumos is at a very exciting stage right now having just secured an FDA clearance for FebriDx much earlier than expected, while continuing to build a robust pipeline of commercial services projects and partnerships. We have strengthened our strategic relationship with Hologic through new development contacts and a sale-and-leaseback agreement that was announced in March 2023. The funds from this current raise will allow Lumos to strengthen its capital structure, by enabling the Company to buy back outstanding convertible notes, and provide working capital to assist its manufacturing and commercial preparations for the anticipated growth in demand for FebriDx.”