Cut-price fundraise ‘secures future’ of medtech group

Yourgene Health has raised £6.4m in a share placing in order “to secure the future of the business”.

The Manchester-based medical research group is now forcasting a loss of up to £4.5m this year, as measured by adjusted EBITDA.

Yourgene also revealed it is “in advanced discussions regarding a possible divestment” and is in separate negotiations about “a possible strategic investment”.

Its share price has been in decline for the past two years, losing 90% of its value to close last night at 1.6p. But the fundraising was priced at 0.3p per share.

Lyn Rees, chief executive of Yourgene Health, said: “The first priority was to secure the future of the business and for that we thank our supportive stakeholders.

“The next priority is to deliver value for investors by demonstrating the merits of the high-quality business we are building in extraordinary times.”

The group raised gross proceeds of £6.4m from its share placing, Directors contributed £1.15m, led by founder Bill Chang who invested £600,000.

Yourgene primarily develops, manufactures, and commercialises simple and accurate molecular diagnostic solutions, for reproductive health, precision medicine and now infectious diseases. These include pre-natal tests for down’s syndrome and other genetic disorders, and cystic fibrosis screening tests.

The group’s board sought to reset expectations in a trading update yesterday – forecasting full-year revenues of £18m-£20m and “tempered” its guidance for subsequent years.

Rees added: “We have a key focus on reducing cost base with operational efficiencies at our new single site UK headquarters including improvements to our manufacturing process.”