Placement & Rights Issue to Accelerate Technology Expansion Program

20-Jul-2018

 

  • Sienna to raise a total of $5.2 million via a placement and rights issue
  • Merchant Opportunities Fund and Mr David Williams to become substantial shareholders
  • 1 for 3 pro rata non-renounceable rights issue offer to raise $3.6 million
  • Funds will be used to accelerate technology expansion program with potential candidates for acquisition currently being assessed

Sienna is pleased to announce it has finalised terms for a $5.2 million capital raise, comprising a $1.6 million placement (Institutional Placement) to an institutional investor (Merchant Opportunities Fund) and Mr David Williams, as well as a $3.6 million rights issue open to existing shareholders.

Background and use of proceeds

Sienna has received commitments from Merchant Corporate Advisory (Merchant) to subscribe for shares through their Merchant Opportunities Fund, via the Institutional Placement at $0.06 per new share to raise approximately $1.6m. Renowned biotechnology investor, Mr David Williams will invest via this Institutional Placement on the same terms. Both the Merchant Opportunities Fund and Mr Williams will become substantial shareholders in SDX.

Additionally, the Company has launched a 1 for 3 pro rata non-renounceable rights issue of approximately 60 million new shares (New Shares) to eligible shareholders also at $0.06 per share to raise approximately $3.6 million (Rights Issue Offer). The Rights Issue Offer will include a facility for eligible shareholders to apply for additional shares not taken up by other eligible shareholders (Top-up Facility). A firm commitment from Merchant has been received to place any remaining shares not taken up in the Rights Issue Offer.

Proceeds from the capital raise are intended to be used to accelerate the Company’s portfolio expansion strategy via acquisition of complementary technologies to expand the company’s commercialisation pipeline, and will also provide additional working capital. Neither the Institutional Placement nor the Rights Issue require Sienna shareholder approval.

Matthew Hoskin, CEO of Sienna Cancer Diagnostics said: “Expanding our technology pipeline by acquisition is one of the four growth strategies that was outlined in our prospectus and reaffirmed in our 2017 annual report. With our first product, the in-vitro diagnostic to detect hTERT, successfully launched in the market place, we are pleased to secure the funding and the support of two new investors both with a track record in the sector.

“With this funding in place, we are positioned to further apply our expertise in successfully advancing new diagnostics from development to commercial stage by establishing a technology pipeline. Our vision is to add more products into our sales channels, leveraging Sienna’s experience, scale, expertise and industry partners, resulting in a growing portfolio of revenue-generating products, benefitting patients, and further enhancing the value of Sienna.

We have identified a number of complementary technology candidates for in-licensing or acquisition and are in discussions with these parties. With this capital raise complete Sienna will be in a better position to progress these opportunities.”

For full details of the Rights Issue, see the ASX release here


 



 
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