Biotech group raises £16m through share placing to fund Canadian acquisition
Manchester biotech group Yourgene Health has raised £16.15m through a share placing to fund the acquisition of Coastal Genomics Inc, a sample preparation technology company based in Vancouver, Canada.
Earlier this week Yourgene, which offers prenatal tests for Down’s syndrome and other genetic disorders, achieved a CE-IVD marking for its coronavirus test kit.
The acquisition of Coastal Genomics will enable Yourgene to extend its offering and IP portfolio in the DNA sample preparation sector.
The deal is valued at $13.5m, comprising an initial consideration of $3m in cash and $2.5m in equity.
Yourgene said proceeds from the placing will be used to fund the acquisition and for general corporate and working capital purposes.
Funds may also be used to accelerate the company’s commercial activities, including new products and services such as its prenatal and COVID-19 testing services, as well as further mergers and acquisitions activity.
Yourgene chief executive, Lyn Rees, said: “We are overwhelmed by the level of support we have seen from our existing and also new shareholders and I would like to extend my thanks to them all for enabling the acquisition of Coastal Genomics and facilitating further growth within the company.
“As an early adopter of this technology, which is now a crucial differentiator in our NIPT (non-invasive prenatal testing) offering, we have got to know the team in Coastal Genomics and respect their capability and potential.
“This is a fantastic opportunity for Yourgene to expand our IP portfolio, grow our core technology and expand our geographical footprint and I am very optimistic about the prospect for the enlarged group to continue our growth journey with a stronger armour of IP and technology.
“The additional funds will be used to accelerate our R&D pipeline, expand our COVID-19 capacity, strengthen our commercial team in key regions and facilitate future M&A activity.”
A team from Manchester law firm Addleshaw Goddard, led by partner Roger Hart and including Lucie Alker, Jade Saunders, Saad Ali, Yara Alshighri and Justine Delroy, advised Yourgene.