LexaGene Holdings Inc. (CVE:LXG) is looking to raise aggregate gross proceeds of approximately C$11,500,000 from a bought deal unit offering under an agreement with Canaccord Genuity Corp and Industrial Alliance Securities Inc.
The company announced Tuesday that it intended to raise about C$7.5 million in the offering. But a day later LexaGene said underwriters had agreed to purchase an additional 4,776,000 units.
The molecular diagnostics company that develops genetic analyzers for rapid pathogen detection said the underwriters now will offer an aggregate of 13,600,000 units of the company at a price of C$0.85 per unit. The company said it intends to use the proceeds of the offering to scale up production, build inventory and for general corporate purposes.
Each offering unit will consist of one common share in the company and one-half of one common share purchase warrant exercisable to acquire one common share of the company for a period of 36 months from closing of the offering at an exercise price of C$1.10 per warrant, subject to adjustment in certain events.
The company said it had granted the underwriters an over-allotment option to purchase up to an additional 1,323,600 units at the offering price, which will be exercisable at any time and from time-to-time, for a period of 30 days following the offering’s closing date, which would result in additional gross proceeds of approximately C$1,125,000.
LexaGene develops genetic analyzers for pathogen detection and other molecular markers for on-site rapid testing in veterinary diagnostics, food safety and for use in open-access markets such as clinical research, agricultural testing and biodefense.
Its MiQLab analyzer delivers excellent sensitivity, specificity, and breadth of detection and can return results in approximately one hour.
--UPDATES to add over-allotment figures--
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