Twiggy Forrest’s Tenmile Ventures is set to become Lumos’s largest shareholder. Pic: Getty Images.
Health & Biotech
Special Report: A wholly owned subsidiary of Andrew and Nicola Forest’s private investment vehicle Tattarang is set to become the largest shareholder in Lumos Diagnostics, with Tenmile acquiring 45m shares from Planet Innovation, representing a 9.3% holding.
Global leader in rapid point-of-care (POC) diagnostic technologies Lumos Diagnostics (ASX:LDX) today announced a $10m equity raising and said Tenmile had intended to subscribe in full for its entitlement and is acting as a sub-underwriter.
“It is anticipated that following completion of the entitlement offer, Tenmile will become the largest shareholder of LDX,” Lumos Diagnostics said in its ASX announcement.
Existing long-term shareholder Ryder Capital (ASX:RYD) also intends to subscribe in full for its entitlement and is acting as a sub-underwriter to the entitlement offer with Bell Potter Securities acting as lead manager.
LDX said the capital raise seeks to raise ~$10m (before costs) and will consist of a 1-for-1.82 accelerated pro-rata non-renounceable entitlement offer, including:
The company added that the retail entitlement offer is underwritten up to approximately $6m. Eligible shareholders can subscribe for one new fully paid ordinary share for every 1.82 company shares held as at 7pm on Friday, September 6, 2024.
All new shares will be issued at a price of 3.8 cents, which represents a 17.4% discount to the last close price of 4.6 cents on September 3, 2024 and 12% discount to the company’s 5-day VWAP of 4.32 cents.
LDX said eligible retail shareholders who have applied for their full entitlement will be able to apply for additional shares under a top-up offer, subject to applications being received by the closing date.
The company noted the entitlement offer and top-up offer will provide eligible shareholders with the opportunity to take up new shares proportional to their shareholding and mitigate the effect of dilution.
LDX’s shares will remain in a trading halt until start of trade on Friday, September 6, pending completion of the institutional entitlement offer.
The retail entitlement offer is underwritten by Bell Potter up to approximately $6m with Tenmile and Ryder Capital acting as sub-underwriters to the retail entitlement offer for up to approximately $6m.
In addition, they have committed to taking up their full entitlements of $1.5m, which in total is up to approximately $7.5m in aggregate.
The institutional entitlement offer is being held on September 4 and 5 with eligible institutional shareholders able to choose to take up all, part, or none of their entitlements under offer.
Tenmile is Tattarang’s dedicated health technology investment business focused on supporting and building early-stage companies through all stages of growth.
The business will become part of LDX’s share registry following its block trade with Planet Innovation Holdings Limited.
LDX said on settlement of the block trade, Tenmile will hold 45m fully paid ordinary shares (being 9.3% of issued capital), and Planet Innovation’s shareholding will reduce from 68m to 23m shares (being 4.8% of the Company’s issued capital, prior to the Entitlement Offer).
LDX CEO and managing director Doug Ward said the company was honoured to welcome an investor of Tenmile’s calibre:
“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.”
He added that LDX will continue its important relationship with Planet Innovation as a key supplier and long-term shareholder.
Funding from the capital raise 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.
The FebriDx point-of-careC test can differentiate a viral from bacterial acute respiratory infection, working to reduce the overuse of antibiotics.
“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,” said Ward.
“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.”
In further good news for LDX, the company recently announced it had extended its existing deal with the Burnet Diagnostics Initiative to progress a new point-of-care test for use in monitoring liver health in an upcoming clinical trial.
This article was developed in collaboration with Lumos Diagnostics, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
Health & Biotech
Health & Biotech
Health & Biotech
