Lexagene (OTCQB:LXXGF (TSXV:LXG) has closed a previously announced bought deal and in the process generated $5.75 million in gross proceeds. The financing which was led by Canaccord Genuity Corp and Echelon Wealth Partners Inc. saw the company issued 5.75 million units, priced at $1 a unit. The units on offer consisted of one common share and one half of one common share purchase warrant.
LexaGene $5.75 Million Capital Raise
The biotechnology company also issued 402,500 compensation warrants to underwriters. The compensation warrants entitles holders to the purchase of $1 a share. Lexagene says it will use net proceeds from the offering to accelerate the development of its microfluidic technology. Part of the funds is also to be used for working capital purposes.
Raising a total of $5.75 million is a testament that institutional and retail investors are slowly coming to terms with the biotechnology growth prospects. The company is fresh from unveiling a better pathogen detection system that it says can identify E.coli and Staph, among over 22 other pathogens. In addition, the new pathogen detection platform can sample up to 6 samples at any given time and provide results in under one hour.
The new technology designed for healthcare providers and food safety officers is set to revolutionize multiple multi-billion industries. The technology should reduce chances of shipping contaminated food items significantly, allowing Lexagene to be a key player in the food safety industry valued at $13 billion.
Rapid Pathogen Detection
Currently, healthcare providers collect samples from patients and ship them to offsite laboratory facilities for testing. The process usually takes 3 to 4 days for doctors to get results. However, with LexaGene rapid pathogen detection platform, doctors will be able to test samples and get results in under an hour, onsite.
Carried tests have already shown that the technology can be relied upon to identify the presence of antibiotic resistance bacteria. The capability should empower healthcare providers to be in a position to treat patients with more targeted therapies
“We need an easier and less expensive solution to find deadly bacteria like E. coli and Salmonella, whether it is in the food plant or a sick person. LexaGene’s technology will soon be the world’s first easy-to-use, open-access, on-site rapid pathogen detection system that has the potential to change how we prevent and diagnose disease,” said CEO Jack Regan.
The raising of $5.75 million should go a long way in helping the biotechnology refine the technology ahead of a potential launch before the end of the year. The company has already inked strategic partnerships with a number of companies and learning institution as it looks to gain access to a wide variety of samples for testing using the prototype.
Lexagene is also planning to advance its technology using a targeted sequencing technology. Integration of the sequencing technology into the microfluidic technology should expand the company’s capabilities to include cancer diagnostics.
It goes without saying that 2018 could as well be a pivotal year for Lexagene as it moves to refine and unveil the new pathogen detection technology for sales.
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