Genomtec will raise PLN 10.6 million (equivalent to over USD 2.6 million), most of which will be used to fund the research & development of its first oncology project “OncoSNAAT” – key to the company’s value growth.
Genomtec has entered into an investment agreement with ten shareholders of the Company, including 5HT Family Foundation, the Company’s founding shareholders Miron Tokarski and Ms. Małgorzata Małodobra-Mazur, and a foreign investor, for the aforementioned amount, in which the shareholders undertook to provide financing to the Company by taking up newly issued shares at a unit price of PLN 10.
The Company will convene an Extraordinary General Meeting to approve the issue of 1,066,684 shares directed to shareholders who have entered into an investment agreement with the Company.
“The investment agreement, which precedes the planned share issue, already gives us a guarantee of the price and number of shares, and therefore fully secures the specific amount that will be in the company’s account after the issue, enabling the smooth continuation of the oncology project. I firmly believe that this is a way of raising capital that is optimal not only for the company itself but, thanks to the price guarantee, also significantly better from the point of view of all our shareholders.” – said Miron Tokarski, co-founder, shareholder and CEO of Genomtec.
At the same time, the Company announced that 5HT Family Foundation (the Foundation), one of the shareholders party to the investment agreement, sold 481,000 existing shares in the Company to financial investors in block transactions. In accordance with the investment agreement, the Foundation intends to use the funds thus raised to subscribe for shares in the Company in a new issue.
Following the issue, Genomtec plans to use the funds almost entirely for furthering the development of the oncology project “OncoSNAAT”, for which Genomtec obtained a national research grant from PARP in the amount of more than PLN 21.6 million in December, 2023.
“The technology we have developed has the potential to significantly increase the availability and speed of genetic testing, which translates into saving the lives of cancer patients. Since we started to communicate our oncology project more widely, which was immediately after the patent protection application and the grant we received, the potential of our project is significantly increasing and attracting the attention of investors, including those interested in the ongoing M&A process. We are very pleased to have secured PLN 10 million for the company, which will cover our immediate capital needs for the oncology project. Our plan includes a very ambitious programme of laboratory research and R&D work that is required to develop the SNAAT® method for oncology diagnostics. The ongoing M&A process gives us a clear signal regarding the needs of the clinical diagnostics market and, together with our partners in the M&A process, we are convinced that further implementation of the oncology project will positively influence the outcome of the M&A process by expanding the Company’s technological potential.” – Miron Tokarski adds.
The “OncoSNAAT” oncology project is a method developed by Genomtec that uses SNAAT® technology to diagnose mutations in cancer for use at the patient’s point of care. In December 2023, Genomtec signed a grant agreement with the Polish Agency for Enterprise Development (PARP) for the oncology project. The amount of the grant awarded is PLN 21.6 million and the total project budget will be approximately PLN 36.7 million. Implementation of the project started in January 2024 and will last until 2027.
Oncology project, co-funded by PARP
Genomtec’s oncology project ‘OncoSNAAT’, which received funding from PARP, consists of the development of technology and an new automated system for mutation detection in the field of clinical oncology based on a lab-on-chip solution and isothermal nucleic acid amplification techniques. Three modules are covered by the project: R&D, Digitalisation and Internationalisation.
The R&D work will include laboratory work on mutation detection technology for oncology diagnosis using microfluidic cards to enable diagnosis and application of molecularly targeted therapy. Further work will develop the technology using a dedicated analyser and a clinical trial will be conducted. As part of the Digitalisation module, an investment will be made in tools to enable more efficient implementation of R&D work. As part of the Internationalisation module, participation in a number of foreign trade fairs and the protection of Genomtec S.A.’s intellectual property are planned.
