Novacyt, a specialist in cancer and infectious disease diagnostics, has raised 3.1 million euros ($3.8 million). New investors in the funding include Alto Invest, which invested alongside new and existing investors.
Novacyt (ALTERNEXT: ALNOV), an international specialist in cancer and infectious disease diagnostics, today announces a private equity placement financing of €3.1m.
“While it is only five months since the merger between Novacyt and Lab21, I am delighted with the strong progress that is being made across the business. The interest shown by new investors in the new Company is encouraging and we genuinely thank them for their trust and support.”
New institutional investors in the Company include Alto Invest, who co-invested in the round alongside other new and existing Novacyt investors. Under the terms of the financing, investors will receive 744 004 of new Novacyt shares which were submitted to the Alternext Paris.
The share capital of Novacyt following the capital increase will amount to €418 048,13 representing 6 270 722 shares with a nominal value of 1/15th of a euro each.
The dilution resulting from the capital raise is 13.46% compared to the 5,526,718 shares currently outstanding. The new shares will be listed on Alternext Paris and rank Pari Passu with existing shares under ISIN code FR0010397232.
The funds will be used for new market launches of its proprietary next generation cytology platform NovaPrep® in 2015, including China and the Far East. This builds on strong sales in existing markets such as Europe and the Middle East, in which Novacyt has a growing customer base.
Additionally, the financing will be used to support the development and commercialisation of molecular diagnostics for infectious diseases starting with the launch of its new products used to diagnose the fungal infections Aspergillis and Pneumocystis. Fungal infections are frequently under-diagnosed using current diagnostic methods and Novacyt’s new molecular tests provide accurate and rapid results for clinicians.
The fundraising builds on a strong year for Novacyt following its acquisition of UK diagnostics specialist Lab21 and the strong progress reported in the integration of the two businesses during the second half of 2014. With clear existing revenue streams and significant prospects for expansion, Novacyt is well positioned to exploit the opportunity presented by the highly attractive diagnostics market.
Graham Mullis, Group CEO of Novacyt, commented:
“While it is only five months since the merger between Novacyt and Lab21, I am delighted with the strong progress that is being made across the business. The interest shown by new investors in the new Company is encouraging and we genuinely thank them for their trust and support.
The fundraising will enable the Company to significantly accelerate the commercialisation of the world-class cytology platform, NovaPrep®. In particular, it enables the Company to expand its global commercial channels, including launching in key new markets in the next few months. Also it allows the Company to develop specific marketing and clinical tools in order to support the commercialisation of the platform. We look forward to updating the market of our progress on the roll-out of NovaPrep® in the very near future.”
Novacyt was advised by Allegra Finance and Oriel Securities to conduct this financing.
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About Novacyt Group
The Novacyt Group is a leader in the field of cellular diagnostics with a growing portfolio of cancer and infectious disease products and services. Through its proprietary technology platform NovaPrep® and a strong international network Novacyt is able to provide an extensive range of oncology and infectious disease products. The Group has diversified sales from diagnostic reagents used in oncology, microbiology, haematology and serology markets, and its global customers and partners include major corporates.
For more information please refer to the website: www.novacyt.com