Epistem to raise 4.3m pounds via placing

Epistem, a biotechnology and personalised medicine company is to raise 4.3m pounds before expenses through a placing of approximately 793.4m shares at 545p a share.

Epistem, a biotechnology and personalised medicine company is to raise 4.3m pounds before expenses through a placing of approximately 793.4m shares at 545p a share.

The new ordinary shares, which represent 8.9% of Epistem's issued share capital have been conditionally placed with existing and new institutional investors at a 4% discount to the closing mid-market price on December 6th. They'll hit the market on December 13th.

The net proceeds of £4.2m will provide funds for the commercial launch of Genedrive, its new molecular diagnostic device as well as its first test for tuberculosis.

Commenting on the placing, Matthew Walls, Chief Executive Officer of Epistem, said: "We are about to enter a new and exciting phase of growth for Epistem with the launch of Genedrive, our first healthcare/diagnostic product. We believe Genedrive can change the way diagnostics is delivered in 'near patient' settings by providing the 'gold standard' of DNA based test results at significantly reduced cost in a simple to use device form."

As announced in the company's preliminary results issued on October 16th, Epistem's collaborations with Becton Dickinson and Xcelris Laboratories include escalating annual volume requirements for units and assays with each contract capable of delivering revenues to Epistem in excess of $20m-30m per annum over the next three to five years.

The company will require more working capital as its first regulated test on Genedrive for the tuberculosis market is expected to generate initial sales in the first quarter of 2013. Regulatory approval of the tuberculosis assay specific to the Indian subcontinent is expected in the first half of 2013.

CM

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020

Most Popular

A simple way to profit from the next big trend change in the markets
Investment strategy

A simple way to profit from the next big trend change in the markets

Change is coming to the markets as the tech-stock bull market of the 2010s is replaced by a new cycle of rising commodity prices. John Stepek explains…
14 Jan 2021
Forget austerity – governments and central banks have no intention of cutting back
Global Economy

Forget austerity – governments and central banks have no intention of cutting back

Once the pandemic is over will we return to an era of austerity to pay for all the stimulus? Not likely, says John Stepek. The money will continue to …
15 Jan 2021
Here’s why markets have shrugged off the US political turmoil
Investment strategy

Here’s why markets have shrugged off the US political turmoil

Despite all the current political shenanigans in the US, markets couldn’t seem to care less. John Stepek explains why, and what it means for your mone…
7 Jan 2021
Free 6 issue trial then continue to