Omega Diagnostics has raised £635,000 from a subscription at 10p a share.
That was a 1.5% premium to the previous closing price. The share price has fallen by around one-quarter in the past 12 months.
Omega is expected to have net debt of £900,000 at the end of March 2019. There is a £2m overdraft facility but management obviously believe it is wise to raise some more cash, even at the current low share price, to continue to invest in the business.
The VISITECT CD4 point of care test remains important. The timing of revenues remains uncertain. The Expert Review Panel for Diagnostics needs to approve the tests so that NGOs can buy it. Registrations in individual countries will also be required.
This uncertainty is reflected in the fact that finnCap has not published forecasts for the current financial year.
A small loss is estimated for the year to March 2019, but there should be a second half profit.
© 2019 Aim Micro. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Omega Diagnostics will lose money this year, but it is on course to become profitable in 2020-21 as sales of the VISITECT CD4 test.
House broker Shore Capital has slashed its pre-tax profit forecast for engineer Tricorn Group by two-thirds to £420,000.
Evgen Pharma has entered into an agreement with The University of Dundee for the use of SFX-01 in a clinical trial in non-alcoholic steatohepatitis and liver fibrosis, where there is no existing treatment.