Lumos Diagnostics (ASX:LDX) has launched an equity offering that will raise up to approximately $10 million through a pro-rata accelerated non-renounceable entitlement offer.
The retail component of the offer is underwritten up to approximately $6 million.
The company said the funds raised will be used to complete the FebriDx Clinical Laboratory Improvement Amendment (CLIA) waiver trial in the US, product development, sales and marketing activities, and general working capital.
Tenmile Ventures has acquired 45 million shares, representing a 9.3 per cent shareholding in LDX.
LDX said Tenmile intends to fully subscribe to their entitlement and is acting as a sub-underwriter of the offer. It is anticipated that Tenmile will become LDX’s largest shareholder following the completion of the entitlement offer.
Ryder Capital, an existing long-term shareholder, also intend to subscribe in full for their entitlement and is acting as a sub-underwriter to the offer. Bell Potter Securities is acting as the lead manager and underwriter of the offer.
Lumos CEO and managing director Doug Ward said, “We are honoured to welcome an investor of Tenmile’s calibre to Lumos. We are strongly aligned in our vision to address unmet needs in human health and look forward to working together to do this, while driving the growth of our business. We also thank Ryder Capital, a longstanding and highly engaged shareholder, for their ongoing support.
“In parallel, I would like to extend gratitude to Planet Innovation for their long-term support of Lumos. We look forward to continuing our important relationship with Planet Innovation as a key supplier and long-term shareholder.
“The funding under this Entitlement Offer will underpin our efforts to complete the CLIA waiver study for our FebriDx point of care diagnostic test in the US. Achieving CLIA waiver status for FebriDx is expected to enable label extension in the US – from the current, moderate-complex label – to include CLIA waived settings. This would greatly expand our market opportunity for FebriDx in the US from around 18,000 sites to approximately 270,000 sites. Recognising the important role FebriDx can play in reducing antibiotic overprescription, we are aiming to complete the CLIA waiver study ahead of the 2025 US flu season.”
