Omega Diagnostics Gp (ODX.L) Fundraising to raise gross proceeds of up to £11m

Funds to further COVID-19 testing opportunities and scale up manufacturing

Notice of General Meeting

Omega Diagnostics Group (AIM: ODX), the medical diagnostics company focused on CD4 and food intolerance testing, announces that it has raised gross proceeds of £8 million via a heavily oversubscribed Placing and Subscription of 20,000,000 new ordinary shares of 4 pence each (“New Ordinary Shares”) to both new and existing institutional investors and a number of wealth managers at an issue price of 40 pence per New Ordinary Share (the “Issue Price”).

Furthermore, the Company proposes to raise up to an additional £3 million by the issue of up to 7,531,100 New Ordinary Shares pursuant to an Open Offer to Qualifying Shareholders at the Issue Price (“Open Offer”, together with the Placing and Subscription the “Fundraising”). The Issue Price represents a discount of approximately 27 per cent to the closing mid-market price of 55 pence on 18 June 2020, being the latest practicable date prior to this announcement. This discount reflects the rapid rise in the Company’s share price from 11 pence on 8 April 2020, immediately prior to announcement of Omega’s participation in the UK Rapid Test Consortium.

The net proceeds of the Fundraising, amounting to between £7.5 million and £10.5 million, depending on the take up of the Open Offer, will be used to exploit opportunities the Company currently has with COVID-19 testing, to scale up manufacturing, to undertake work to improve the margin of its VISITECT® CD4 products and to expand its lateral flow product portfolio with products which are complementary to its VISITECT® CD4 products.

Summary:

· Placing of 19,950,000 New Ordinary Shares (“Placing Shares”), split between 7,515,350 First Admission Placing Shares, and 12,434,650 Second Admission Placing Shares at the Issue Price to raise gross proceeds of £7.98 million.

· The Placing Shares have been conditionally placed by finnCap Ltd with new and existing institutional and other investors (the “Placees”).

· Direct Subscription of 50,000 New Ordinary Shares at the Issue Price to raise gross proceeds of £20,000 (“Subscription Shares”).

· Open Offer of up to 7,531,100 New Ordinary Shares (“Open Offer Shares”) for Qualifying Shareholders on the basis of 1 New Ordinary Share for every 20 Existing Ordinary Shares held (with excess application facility) to raise up to £3.01 million.

· The New Ordinary Shares issued under the Fundraising will represent approximately 18.28 per cent of the Company’s existing issued share capital*.

· Certain Directors have subscribed for a total of 122,500 Placing and Subscription Shares, representing a Related Party Transaction for the purposes of the AIM Rules.

· Application will be made to the London Stock Exchange for the First Admission Placing Shares to be admitted to trading on AIM on 25 June 2020 (“First Admission”).

· Subject to passing of the Resolutions and the General Meeting, application will be made to the London Stock Exchange for the Second Admission Placing Shares, Subscription Shares and Open Offer Shares to be admitted to trading on AIM on 13 July 2020 (“Second Admission”).

· Further details of the Placing, Subscription and Open Offer are set out below.

A Circular to Shareholders in respect of the Fundraising is expected to be posted on 22 June 2020 giving notice of the General Meeting to be held on 10 July at 11 a.m. at the offices of the Company at Omega House, Hillfoots Business Village, Alva, Clackmannanshire, FK12 5DQ. A copy of the Circular will be available on the Company’s website:

http://www.omegadiagnostics.com/Investor-Relations/Corporate-Information

Colin King, CEO of the Company commented:

“This Fundraising marks another significant moment in the Company’s development and we are pleased with level of support shown from our existing shareholders and new investors in the Placing. The Fundraising will allow Omega to capitalise on the current opportunities it has regarding COVID-19 and build a strong position in the global health diagnostic market by using its existing skill set and experience with lateral flow devices. Furthering these opportunities will allow the Company to continue delivering on its mission to improve human health and well-being through innovative diagnostic tests and global partnerships.

” We look forward to being able to update the market on the progress made on our COVID-19 testing opportunities along with the opportunities available to the core business with VISITECT® CD4 and Food Intolerance . ”

*Assuming full take-up of the Open Offer


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