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Biolidics to raise S$3.1m from share placement for expansion

CANCER diagnostics company Biolidics on Monday said it will undertake a share placement to raise about S$3.1 million to fuel its business expansion and pursue new growth opportunities.

The Catalist-listed company will issue about 17.9 million new ordinary shares at 17.5 Singapore cents each.

This issue price represents about a 7.3 per cent discount to the counter's volume weighted average price of 18.88 Singapore cents per share for all trades done on Friday.

Most of the 21 subscribers in the placement are private investors. The majority are also existing shareholders with stakes in Biolidics ranging from 0.02 per cent to 2.3 per cent, and the remaining nine will become new shareholders.

After the placement, the subscribers will hold stakes ranging from 0.04 per cent to 2.91 per cent in Biolidics.

The only company among the placees is Kenyon, a Singapore-incorporated firm with businesses in building construction, engineering design and consulting activities. Kenyon will pay S$350,000 to increase its stake in Biolidics to 2.91 per cent from its current 2.3 per cent shareholding.

The placement shares in total represent some 7.36 per cent of Biolidics' existing share capital, and will represent about 6.86 per cent of its enlarged share capital.

Biolidics said that each of the subscribers had previously expressed an interest to invest or further invest in the company. Biolidics independently approached these subscribers.

The company also said it understands that the subscribers are participating in the placement "purely for financial investment purposes".

Of the S$3.1 million in estimated net proceeds, Biolidics intends to use around half of it - about S$1.6 million - to expand the group's presence in its existing markets and into new market segments, and to establish new sales channels.

About S$792,000 or roughly one-quarter of the net proceeds will go into expanding the company's businesses through investments, mergers and acquisitions, joint ventures and/or strategy collaborations with third parties.

The remaining S$711,000 or about 23 per cent of the net proceeds will be used for general working capital purposes.

Shares of Biolidics closed flat at 20.5 Singapore cents on Friday.