Genedrive losses widen, announces £6m placing

Molecular diagnostics specialist Genedrive plans to raise cash to support development of its hepatitis C tool after annual losses widened a touch despite an uptick in revenue and other income.

Revenue and other income picked up 34% to £2.6m, partly due to the disposal of the group's services division back in June, but losses still widened 6% to £7m.

Genedrive's losses were mainly a result of a doubling of financing costs to £400,000. Losses per share also widened to 37.6p from the 35.7p recorded a year earlier.

Chief executive David Budd said: "Progress during the year has been positive. We have the first to market point-of-need molecular test for HCV and we are well positioned in what is significant market where many millions of people are affected in low- and middle-income countries but diagnosis rates are low."

In a separate announcement, Genedrive revealed its intentions to raise £6m by way of a conditional placing of 15.21m new ordinary shares at a price of 23p each - the same as its closing price on 15 November.

The group will also issue £2.5m in unsecured convertible loan notes to BGF fund the launch of the Genedrive's HCV-ID Kit for hepatitis C diagnosis and support projects to enhance the gross margin for this assay.

As of 0840 GMT, Genedrive shares had climbed 3.65% to 23.84p.