Issue rejected

Omega seeks finance options after shares plan fails

Omega Diagnostics
Shareholders threw out the placing and open offer

Omega, the specialist medical diagnostics company, has been forced to seek new sources of funding after shareholders rejected its plan to raise £7 million through an issue of shares.

The failure to secure support for the placing, subscription and open offer means it will not now take place.

The Clackmannanshire-based group is therefore not funded to pursue its growth strategy and the directors will now need to reassess the strategy, said the company in a statement.

It was announced last week that fewer than one in four shareholders had taken up the shares which have plunged in value over the past year following the cancellation of a UK government contract for Covid test kits.

By the closing date it received acceptances for just 23.5% of the new shares through the offer.

The fundraising was conditional on the approval by shareholders at the company’s general meeting today.

Jag Grewal, chief executive, said: “The board is encouraged that resolution 1, increasing the directors’ authority to allot shares, was approved by shareholders and notes the views of some retail shareholders with regards to resolution 2 and their pre-emption rights. 

“Accordingly, the fundraise will not proceed and the company will look at other strategic and funding options.”

Earlier, it was announced that the £1 million sale of the Alva test kit site to Accubio, a subsidiary of China-based Zhejiang Orient Gene Biotech, has been completed. The company is relocating to Cambridge.

Mr Grewal said: “We are extremely pleased to confirm the sale of the historical Alva site today, ensuring job security for all employees transferring to Accubio. This is the first step in our planned strategy to reshape and restructure the business.”

The shares closed 1.08p (24.29%) higher at 5.5p.

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