Alva-based Omega Diagnostics Group announced on Friday an £11 million fundraising “to further Covid-19 testing opportunities and scale up manufacturing.”

In a stock exchange statement, Omega Diagnostics said: “Omega Diagnostics Group … announces that it has raised gross proceeds of £8 million via a heavily oversubscribed placing and subscription of 20,000,000 new ordinary shares … to both new and existing institutional investors and a number of wealth managers at an issue price of 40 pence per new ordinary share …

“Furthermore, the company proposes to raise up to an additional £3 million by the issue of up to 7,531,100 new ordinary shares pursuant to an open offer to qualifying shareholders at the issue price …

“The issue price represents a discount of approximately 27 per cent to the closing mid-market price of 55 pence on 18 June 2020, being the latest practicable date prior to this announcement.

“This discount reflects the rapid rise in the company’s share price from 11 pence on 8 April 2020, immediately prior to announcement of Omega’s participation in the UK Rapid Test Consortium. 

“The net proceeds of the fundraising, amounting to between £7.5 million and £10.5 million, depending on the take up of the open offer, will be used to exploit opportunities the company currently has with Covid-19 testing, to scale up manufacturing, to undertake work to improve the margin of its VISITECT CD4 products and to expand its lateral flow product portfolio with products which are complementary to its VISITECT CD4 products.”

Omega Diagnostics Group CEO Colin King said: “This fundraising marks another significant moment in the company’s development and we are pleased with level of support shown from our existing shareholders and new investors in the placing.

“The fundraising will allow Omega to capitalise on the current opportunities it has regarding Covid-19 and build a strong position in the global health diagnostic market by using its existing skill set and experience with lateral flow devices.

“Furthering these opportunities will allow the company to continue delivering on its mission to improve human health and well-being through innovative diagnostic tests and global partnerships.

“We look forward to being able to update the market on the progress made on our COVID-19 testing opportunities along with the opportunities available to the core business with VISITECT CD4 and Food Intolerance.”