GTG
Lead Manager
Offer Price
A$0.040
per share
Offer Size
A$3,880,000
Issue Price (Per Share)
A$0.040
Offer Size
A$3,880,000
Shares Available
96,944,831
The Company is seeking to raise up to a maximum amount of A$3.88 million (Maximum Amount) via the issue new fully paid ordinary shares in the capital of the Company (New Shares), pursuant to the terms of its prospectus dated 2 August 2024 (Prospectus) and refer attached.
The New Share will be issued at $0.04 per share plus a free attaching new option for every new share subscribed to with an exercise price of $0.04 and expiry 2 years from the issue date.
GTG is a diversified molecular diagnostic company which distributes and sells genomics-based test kits for health, wellness and serious diseases. The company’s kits are sold under three different brands, geneType, EasyDNA and AffinityDNA.
GeneType is a simple saliva test and is mainly sold B2B (B2C with medical supervision) to participants within the healthcare industry. The test is a risk assessment tool which gives a polygenic risk score derived from a subset of common genetic markers known as singular nucleotide polymorphisms (SNP) that are disease associated, covering 70% of all serious diseases including cancers, metabolic and cardiovascular. The polygenic risk is then integrated with other risk factors such as demographics and clinical measurements. The integration is what sets this test apart from other tests and has extensive patent protection
EasyDNA and AffinityDNA sell DNA tests including lifestyle, health, and wellbeing genomics-based tests, plus animal testing relating to allergies and intolerances via online marketplaces, including Amazon. These tests are sold directly to the consumer and DIY with a short turnaround of 3-5 working days for results from receipt of samples.
The company recorded $7.665 million sales revenue in the 12-month period to 30 June 2024 (unaudited). GTG announced a strategic restructure to the ASX on 26 July 2024 following an operations review. The Company intends to transition to a capital light operations model – which is anticipated to result in an immediate material reduction in operating costs. This capital light operations model is intended to focus on sales growth (particularly in the Company's largest market in the United States) and move the Company's operations to an outsourced / collaborations approach (rather than the more expensive current in house laboratory operations).
Proceeds from the Offer will be used to support the strategic restructure of the business to focus on USA sales growth, as described in the Prospectus. More specifically, use of proceeds will support: increased sales and marketing spend to achieve growth in revenues across both the geneType and EasyDNA platforms (currently generating revenues of $7m pa); restructure costs, redundancies, advisors fees and related expenses; loan repayment of short-term R&D loan; working capital; and costs of the Offer.
The dates are indicative only and are subject to change without notice. The Company reserves the right to extend the Closing Date of the Offer or close the capital raise early without notice, provided that the final date for securing the Minimum Subscription Amount cannot be extended beyond that permitted under section 724 of the Corporations Act. All times are in AEST (Sydney, Australia) unless stated otherwise
Announcement of Offer
Monday 26, July 202
Prospectus lodged with ASIC and released to the ASX
Friday 2, August 2024
Record Date of the Entitlement Issue
Wednesday 7, August 2024
Entitlement Offer Opens
Monday 12, August 2024
Shortfall Offer bids due date
Wednesday 28, August 2024
Shortfall Offer commitment letter return date
Thursday 29, August 2024
Entitlement Issue Closes
Monday 2 September 2024
Result of Offer and Shortfall
Monday 9 September 2024
Allotment of Entitlement Shares
Monday 9 September 2024
Entitlement Underwriting (if any) settlement date
Tuesday 10 September 2024
Shortfall Offer settlement date
Tuesday 10 September 2024
Chairman & Non-Executive Director
Mr. Rubinstein was appointed to the Board on 31 January 2018 and appointed as Chairman in April 2020. He has over 20 years of experience in early-stage technology commercialisation through to public listings on the ASX. He is a lawyer, having worked at a large national firm prior to moving in-house at Montech, the commercial arm of Monash University. Mr. Rubinstein has had significant exposure to the creation, launch, and management of a diverse range of technology companies in biotech, digital payments, and renewable energy. Mr. Rubinstein is also a Non-Executive Director of DigitalX Limited (ASX: DCC).
Non-Executive Director
Dr. Wakefield was appointed to the Board on 24 September 2014. He started Safetech in 1985 and over the next 25 years, Safetech became a force in the Australian material handling and lifting equipment market, designing and manufacturing a wide range of industrial products. In 1993, he left medicine to become the full-time CEO of Safetech. In 2006 Safetech was awarded the Telstra Australian National Business of the Year. In 2013 Safetech merged and ultimately acquired Tieman Materials Handling.
Dr. Wakefield continues as the CEO of Safetech. It is Australia’s largest manufacturer and supplier of dock equipment, freight hoists and custom lifting solutions. Safetech employs approximately 100 people. Dr. Wakefield has been a biotech investor for more than 20 years.
Non-Executive Director
Dr. Muchnicki was appointed to the Board on 31 January 2018 and acted as Interim Chief Executive Officer from September 2019 till the appointment of Mr. Simon Morriss to the role. George graduated from Monash University and has held positions in private practice for over 25 years and was Head of Student Health at The University of Melbourne. For the past 14 years, he has been involved in commercialisation and funding R&D in the biotechnology sector from gene silencing to regenerative medicine.
Dr. Muchnicki brings with him strong commercial and medical skills, including broad interests in software development, blockchain and sustainable building materials. He is a co-founder and Non-Executive Director of Speed Panel Holdings a world leader in fire rated and acoustic wall solutions. He is also the co-founder of Candlebets, a software development company that is creating blockchain enabled platforms for the gaming industry.
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