London health and nutrition specialist raises £5m with plans for expansion

London based Omega Diagnostics Group PLC, the specialist medical diagnostics company focused on health and nutrition, announced that it has raised gross proceeds of £5m.

This was conducted via a placing and subscription of 100 million new ordinary shares of 4 pence each to new institutional investors and a number of wealth managers at an issue price of 5 pence per new ordinary share.

Furthermore, the company also proposes to raise up to an additional £2m by the issue of up to 40,596,089 new ordinary shares pursuant to an open offer to qualifying shareholders at the issue price.

The net proceeds of the fundraising, amounting to between £4.6m and £6.6m, depending on the take up of the open offer, will be used to drive growth in the “profitable and growing” health and nutrition business.

Additionally, the proceeds will provide the necessary finance to relocate CD4 production to the company’s new, purpose-built manufacturing facility in Ely, Cambridgeshire, as well as supporting a transition to a sub-contract model for COVID-19 test manufacture.

Jag Grewal, CEO of Omega, commented: “Having already announced the first stage of our planned strategy to improve sales performance across the Group and to reduce losses, the transfer of our Alva site to Orient Gene and this fundraise delivers the additional capital for Omega to drive growth in our Health & Nutrition division.

“At the conclusion of our planned strategic review of CD4, the funding provides us with the potential opportunity to relocate our CD4 production to our new Ely site and improve operational efficiencies.

“I would like to put on record my thanks to new and existing shareholders for their support and we look forward to updating the market with regards our new strategy in the months ahead.”