Ever thought about how your chin resembles your father? Or your eye colour resembles your great grandmother – it’s all in the genes right! Genetics and DNA lie at the heart of biological sciences.
Genetic Technologies (ASX: GTG) is initiating a strategic transformation to enhance prospects and financial stability. The plan involves operational restructuring to adopt the capital-light model, and expand their clientele in the United States. This involves outsourcing laboratory operations and reducing costs.
GTG is sharpening its focus on its core units, EasyDNA and geneType, to streamline operations and cut costs. By outsourcing its lab work, GTG plans to slash monthly expenses from $800,000 to under $200,000, boosting financial efficiency.
To support this transition, GTG is securing an $800,000 short-term loan and raising at least $2 million through a 2 for 3 Rights Issue at 4 cents per share, with an attached 1:1 option. This capital will fuel ongoing innovation, particularly in geneType’s serious disease risk tests, backed by over $50 million in R&D funding.
With rising numbers of high risk diseases like cancer, molecular diagnostics company GTG piloted its risk assessment test geneType in breast screening centres across the US earlier this year. The Company has established a clinical implementation study with breast imaging centres in New York, Miami and Houston.
In H1 FY24, the Company recorded cash receipts of $3.9 million and launched a digital transformation strategy. A record number of geneType tests were processed, with six times more commercial samples received compared to the prior period. Whilst the Company launched the Hereditary Breast & Ovarian Cancer Risk Assessment Test (HBOC) via an exclusive Santa Monica event for select clinicians.
In addition to the entitlement offer, a top-up offer allows eligible shareholders to purchase additional shares. Although directors are committed to investing $500,000, the offer is not fully underwritten. Detailed terms will be outlined in a prospectus to be lodged around August 12, 2024.
GTG shares reached a low of $0.041 in early morning trade which was a 6.82% decrease on the previous $0.045 close price.
Sidra is a Business Writer with The Sentiment
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1 Comment
Shraddha13
Thank you for sharing! To explore further
Replyhttps://www.360iresearch.com/library/intelligence/genetic-stability-testing-service