LexaGene Holdings Inc. (OTCQB: LXXGF) (TSX-V:LXG) has set its eyes on the food safety and veterinary diagnostics market, with its Microfluidic emerging technology. The technology has the potential to address multiple multi-billion dollar markets in the detection of pathogens.
C$5 Million Capital Raise
In a bid to enhance the development of the technology, the biotechnology company has entered into an agreement with a group of underwriters led by Canaccord Genuity. Under the terms of the agreement, the company is to sell, 5 million units of stock priced a $1 per unit.
The company has also granted underwriters 30-day option to purchase an additional 750,000 shares at a price of $1 per unit. The offering should close on or about July 11, 2018. Each unit on offer consists of one common share and one purchase warrant.
LexaGene Holdings Inc. (OTCQB: LXXGF) (TSX-V:LXG) expects C$5 million in gross proceeds from the transaction. Net proceeds from the transactions are to be used to advance the development of the microfluidic technology which the company is positioning for the detection of pathogens in various industries.
Part of the funds is also to be used for the general corporate purposes. The company is also planning to expand its footprint on the international scene, buoyed by recent developments in the development of instruments for pathogen detection.
The biotechnology has been aggressive in recent months on the signing of strategic collaborations as it looks to refine its pathogen detection technology. The technology is now capable of generating data in addition to being able to detect E. coli and Staph bacteria.
LexaGene’s pathogen detection technology is designed for healthcare providers as well as food safety officers as it is capable of detecting six samples at a time while searching up to 22 pathogens. The biotechnology company expects the technology to play an important role in the food industry as it moves to equip it with reagents for detecting more diseases such as Salmonella and Listeria.
Early this month the company entered into a strategic collaboration with Texas A & M Veterinary Medical Diagnostics laboratory. Texas A & M has since agreed to supply the biotechnology company with canine urine samples for testing with LX6 prototype.
The Texas A &M deal came just days after Lexagene confirmed it had entered into a strategic agreement with the Stanford University School of Medicine. The two are to collaborate in using targeted sequencing technology in combination with microfluidic technology in cancer diagnostics.
“LexaGene’s technology was originally designed for pathogen detection across very large markets – I’m thrilled to report that we are working to expand our technology’s capability to include cancer diagnostics and Next Generation Sequencing,” said Dr. Jack Regan, LexaGene CEO.
According to the Chief Executive Officer, such strategic collaborations are of great importance as they provide the company with access to vital technology and samples for refining the microfluidic technology.
Working with collaborators from different geographic regions should also allow the company to gain access to an adequate representation of diseases that thrive in different climates. In the long term, LexaGene should provide a better technology capable of reducing the chances of shipping contaminated food.
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