Omega Diagnostics raises funds for research and development

Medical company Omega Diagnostics Group has raised four million pounds through the placement of over 23m shares which will be used to fund the development of new products.

The company, focused on developing diagnostics for allergies, food intolerances and infectious diseases, said it intends to use the proceeds for its allergy instrumentation strategy and to fund a final instalment due under the patent licence agreement with medical equipment company IDS.

Proceeds will also be used to fund the initial Visitect CD4 inventory build requirement and to roll out the test into field trials.

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The remainder of fundraising will be used to explore opportunities that may exist in the HIV viral load area, settle outstanding loans when falling due and for general overheads and working capital.

"We are delighted to have received the support of investors for the next phase in Omega's development through this oversubscribed fundraising," said Chief Executive Officer, Andrew Shepherd.

"We believe that CD4 represents a unique product that satisfies an urgent and unmet clinical need and has the potential to transform the way HIV is treated in developing countries. We are also confident that our work with IDS to develop allergy tests on the IDS-iSYS platform will generate value for shareholders."

Shares rose 12.24% to 20.62p at 09:54 Friday.

RD