Fund raising

Omega considering £7m placing and open offer

Omega Diagnostics
Omega Diagnostics is seeking fresh finance

Omega Diagnostics, the specialist food and health testing company, has confirmed it is considering a £5 million share placing and an accompanying open offer to raise a further £2m.

The board of the Alva-based business said it has “conditional investor support” for an equity fund raising at 5p per share, but going ahead with it depends on “other corporate actions currently being explored by the group”.

Colin King resigned last month as chief executive, having served for six and a half years. He was replaced by Jag Grewal, who was promoted from managing director of the health & nutrition division.

Shares in the AIM-quoted firm fell 27% to 7.25p.

At the end of last month the company lost a third of its value after indicating that it may turn to investors for more cash – just days after stating it had no reason to do so.

The shares have been in decline since its failure to secure a contract for Covid testing kits from the UK’s Department of Health and Social Care.

However, it recently announced that its COVID-19 self-testing kit had achieved a key milestone in providing accurate results and that it remains in discussions with commercial partners about how best to service the European market and other territories.

This will be a commercial offering via B2B partners and distributors, and not through a direct-to-consumer strategy.

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