The AnteoTech Ltd (ASX: ADO) share price will be one to watch when it returns to the ASX boards. It comes after a capital raising and trading update from the Aussie biotech company prior to the market open.
Why is the AnteoTech share price on watch?
AnteoTech shares haven't traded since closing at 42 cents per share last Friday. The company requested a trading halt pending a capital raising update which has been provided early on Wednesday morning.
AnteoTech reported firm commitments to raise $12 million by issuing 46.2 million new fully paid ordinary shares at 26 cents per share. That represents a 20.3% discount to the 10-day volume-weighted average price (VWAP).
Funds from the placement will be used to scale up the rollout of its proprietary EuGeni reader and COVID-19 in vitro Antigen Rapid Test test (COVID-19 ART). The new capital will also help accelerate the pipeline of other assay tests and for working capital purposes.
The update is sure to have investors watching the AnteoTech share price in early trade. It comes as AnteoTech looks to accelerate its COVID-19 Saliva and COVID-19 Flu A/B test for commercialisation in late 2021. The company is targeting clinical trials in late 2021 for its early-stage sepsis detection test.
AnteoTech CEO Derek Thomson said:
AnteoTech now has the necessary financial flexibility to scale up operations and accelerate the rollout of its EuGeni reader platform and COVID-19 ART test, as well as our growing pipeline of other assay tests which will provide us with a considerable competitive advantage in the current market.
The company is also launching a Share Purchase Plan (SPP) to raise more capital to fund development and growth. The company is looking to raise an additional $4 million from eligible, existing shareholders at that same AnteoTech share price of 26 cents.
Foolish takeaway
AnteoTech closed on Friday at $0.42 per share with a $777.7 million market capitalisation. That means the AnteoTech share price will be one to watch as it returns to trading for the first time this week following the update.
