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LexaGene Holdings files preliminary prospectus relating to offering to raise funds for R&D, marketing

Published: 09:10 25 Sep 2019 EDT

Lexagene Holdings Inc - LexaGene Holdings files preliminary prospectus relating to offering seeking to raise funds for R&D, marketing
Armed with promising study results and proven technology, LexaGene is getting ready to launch the LX2 Genetic Analyzer to underserved markets valued at an estimated US$40 billion

LexaGene Holdings Inc (CVE:LXG) (OTCMKTS:LXXGF) said Wednesday that it has filed a preliminary prospectus with the securities regulatory authorities in each of the Canadian provinces, except Quebec, relating to the planned sale of units to raise a minimum of $3.5 million and a maximum of $10 million.

In a statement, the Beverly, Massachusetts-based biotechnology company said Industrial Alliance Securities Inc will act as lead agent for the offering in Canada. The company added that it may also sell units in the United States through a private placement.

LexaGene Holdings, which is pioneering the first fully automated pathogen detection platform for use in diagnostics and sample analysis, said it plans to use the proceeds for research and development, marketing, and possibly to support the building of inventory and initial commercial sales.

READ: LexaGene is enabling faster, easier pathogen detection

Armed with promising study results and proven technology, LexaGene is getting ready to widely launch the LX2 Genetic Analyzer to underserved markets valued at an estimated US$40 billion. The LX2 Analyzer is designed for non-technical workers to use easily, whereas most instruments currently on the market require a skilled molecular biologist to operate the system. The flow-through instrument processes large sample volumes to increase the chance of detecting very rare pathogens. It also comes at a low cost per test, as the instrument uses reagents stored in bulk reservoirs instead of cartridges with pre-embedded reagents.

Each unit will consist of one common share and one share purchase warrant with each warrant entitling the holder to purchase a share.

The company said the number of units for sale, the price per unit and the exercise price will be determined before filing the final prospectus.

The offering is contingent on the company and the agent arriving at a final agreement, satisfying customary closing conditions, and getting the necessary stock exchange approvals.

Contact Uttara Choudhury at uttara@proactiveinvestors.com

Follow her on Twitter: @UttaraProactive 

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