GTG secures extra $800k through capital raising

Genetic Technologies (ASX:GTG) has secured an additional $800,000 in funding under its ongoing capital raising program.

The company has arranged to raise the sum through a further private placement to sophisticated investors.

GTG completed a $2.2 million private placement at the start of the month, and is also planning a share purchase plan (SPP) to raise up to a further $3 million.

Lodge Corporate and Cygnet Capital, the underwriters for the SPP, have meanwhile agreed to increase the level of underwriting for the offer from $400,000 to $1.8 million, the maximum amount possible under GTG’s placement capacity.

“The significant additional commitment from the underwriters provides the company with greater confidence that the SPP will be successful and that, hopefully, a larger proportion of eligible shareholders will take up their entitlements,” GTG CEO Alison Mew said.

Coupled with a planned issue of convertible notes to investor Ironridge Global IV, the new placement increases the total maximum target for the capital raising to $11.4 million.

GTG has previously revealed plans to put proceeds from the raising towards expanding US distribution and marketing for BREVAGen, its genetic test for breast cancer risk, and completing studies to add Hispanic and African ethnicities to its addressable US market for the tool.

Both placements and the SPP offer are priced at $0.072 per share, which compares to a closing price of $0.095 on Monday, the day before the new placement was announced.

Genetic Technologies (ASX:GTG) shares were trading 8.42% lower at $0.087 as of around 12.30 pm on Tuesday.