REG - Genedrive PLC - Further re Equity Financing

GenedriveAnnouncement

09/10/2025 10:30

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RNS Number : 7552C  Genedrive PLC  09 October 2025

genedrive plc

("genedrive" or the "Company")

 

Further re Equity Financing

 

genedrive plc (LSE: GDR) Further to the Company's announcement on 6 October
2025 the Company has noted extensive postings on online bulletin boards which
it believes to be made by David Nugent ("the Shareholder"), a 10.1%
shareholder in the Company as of 2 October 2025 including via a limited
company ("the Posting"), who first declared his interest on 8 September
2025.

 

The Shareholder has made several posts about the Company and the recent Equity
Financing in which he has called for alternative forms of financing to fund
the Company. The Board has clearly stated it has explored a wide range of
alternative financing options, and the Shareholder has not proposed any
alternative financing for the Board to consider.

 

The Company has, on several occasions, offered to engage with the Shareholder
and provided a standard confidentiality agreement in order for the Shareholder
to undertake due diligence on the Company, however this agreement has not been
progressed, and the Shareholder has not indicated that they would be prepared
to enter into such an agreement.

 

Whilst the Company appreciates the Shareholder has a significant shareholding,
they have no prior experience of being a director of a public company and, so
far as the Company is aware, have no experience of the medical device industry
or advanced healthcare systems in international or domestic markets.
Furthermore, the Board is not aware of a track-record of marketing or selling
medical diagnostic products and therefore the value the Shareholder would
bring to the Company and its shareholders through joining the Board is not
clear.  The Shareholder has also not provided a cogent plan as to how they
might change the Company operationally, commercially or financially in order
to remain a viable business going forwards.

 

The Board makes the following points ahead of the general meeting on 15
October 2025:

 

·    The Equity Financing announced on 23 September 2025 was the only
certain financing option available to it;

 

·     As set out in the announcement of the results of the Retail Offer
issued on 29th September 2025, total demand received through the Retail Offer
was approximately £0.68 million which was scaled back to approximately £0.33
million in accordance with the terms of the Retail Offer.  The Equity
Financing was conditional on raising not less than £3 million (gross) in
order to provide the Company with a meaningful runway, demand from the Retail
Offer alone would not have reached the minimum threshold;

 

·     Should the Conditional Placing and the Retail Offer complete, the
Company's cash runway will be extended into Q2/Q3 2026 during which time the
Company would be utilising the net proceeds to continue to drive sales and
also get closer to potential launch in other markets (including the US) whilst
also continuing to bring significant benefits to patients;

 

·     The Warrants to be issued as part of the Equity Financing could
potentially raise an additional £7.25 million for the Company if exercised in
full, thereby providing significant additional capital for the Company to fund
its operations as it drives to get to EBITDA positivity in the second half of
the financial year ending 30 June 2027.

 

·     It is highly unlikely that alternative financing solutions will be
made available to the Company in the short term given the extensive efforts
made in recent months to secure financing from a broad range of potential
providers.  Whilst the Company has successfully secured non-dilutive grant
funding in the past the Company does not expect to receive any incremental
non-dilutive funding in the short term;

 

·    In the event that the Conditional Placing and the Retail Offer do not
complete the Company's cash runway is very limited, and it is highly likely
that the Company would in the  coming weeks be required to take steps in
order to protect the interests of, inter alia, creditors of the Company, with
these actions likely materially impacting shareholder value.  Further, in
such circumstances the Company believes it is likely that key members of staff
may seek alternative employment given the significant uncertainty over the
Company's future and the Company's ability to make new hires into the business
will also be significantly hampered.  The Company's standing with its
suppliers, collaborators and customers is also likely to be materially
impacted negatively;

 

·     In the event that the Resolutions are not passed at the General
Meeting on 15 October the Board believes that the prospects of raising
additional equity financing in the future via transactions requiring
shareholder approval will be severely damaged and limited; and

 

·     As a result of being a public company the Group has been able to
raise material funding to date, accordingly the Board sees the Company's quote
on AIM as an important part of the Company's future so long as the Company
remains adequately funded.  Further, no discussions have taken place with
regards to taking the Company private.

 

Dr Gino Miele, CEO of genedrive plc, said: "The Board of genedrive welcomes
the support, engagement and investment of the Shareholder.

 

"genedrive is in the strongest commercial position it has been for many years
with improving revenue visibility helping to mitigate cash burn. Our
technologies have been developed with the NHS, for the NHS, to solve
real-world clinical challenges. We have two commercial, CE-IVD approved and
NICE-recommended pharmacogenetic tests that are already helping patients
across the UK and further afield.  We are proud to be transforming patient
outcomes, facilitating equitable access to healthcare, and improving
healthcare economics.

 

"In addition, over the past months, the Company has been engaging with
national and local government in the UK and commercial stakeholders, in order
to accelerate the adoption of its diagnostic tests for both stroke and
antibiotic induced hearing loss in newborn babies.   We expect this to help
drive adoption and sales going forwards.

 

"I believe our diagnostic tests can make a meaningful impact for patients and
healthcare systems in the UK and more widely. If the resolutions were to be
voted down, this would lead to an immediate material risk to the business.

 

"I urge you to vote in favour of the resolutions proposed."

 

Accordingly, the Directors reiterate the importance that shareholders vote in
favour of the resolutions being proposed at the General Meeting on 15 October
2025.

 

Capitalised terms in this announcement shall, unless the context demands
otherwise, bear the meanings given to such terms in the Launch Announcement
issued on 23 September 2025.

 

For further details please contact:

 

 genedrive plc                                                               +44 (0)161 989 0245
 Gino Miele: CEO / Russ Shaw: CFO

 Peel Hunt LLP (Nominated Adviser and Broker)                                +44 (0)20 7418 8900
 James Steel

 Allenby Capital Limited (Joint Broker and Joint Bookrunner to the Placing)
 Nick Athanas / Vivek Bhardwaj (Corporate Finance)                           +44 (0)20 3328 5656

 Amrit Nahal / Kelly Gardiner (Sales & Corporate Broking)                    info@allenbycapital.com (mailto:info@allenbycapital.com)

 Walbrook PR Ltd (Media & Investor Relations)                                +44 (0)20 7933 8780 or genedrive@walbrookpr.com
                                                                             (mailto:genedrive@walbrookpr.com)
 Anna Dunphy                                                                 +44 (0)7876 741 001

 

About genedrive plc (http://www.genedrive.com (http://www.genedrive.com) )

 

genedrive plc is a pharmacogenetic testing company developing and
commercialising a low cost, rapid, versatile and simple to use point of need
pharmacogenetic platform for the diagnosis of genetic variants. This helps
clinicians to quickly access key genetic information that will aid them make
the right choices over the right medicine or dosage to use for an effective
treatment, particularly important in time-critical emergency care healthcare
paradigms. Based in the UK, the Company is at the forefront of Point of Care
pharmacogenetic testing in emergency healthcare. Pharmacogenetics informs on
how your individual genetics impact a medicines ability to work for you.
Therefore, by using pharmacogenetics, medicine choices can be personalised,
made safer and more effective. The Company has launched its two flagship
products, the Genedrive® MT-RNR1 ID Kit and the Genedrive® CYP2C19 ID Kit,
both developed and validated in collaboration with NHS partners and deployed
on its point of care thermocycler platform. Both tests are single-use
disposable cartridges which are ambient temperature stable, circumventing the
requirement for cold chain logistics. The Directors believe the Genedrive®
MT-RNR1 ID Kit is a worlds-first and allows clinicians to make a decision on
antibiotic use in neonatal intensive care units within 26 minutes, ensuring
vital care is delivered, avoiding adverse effects potentially otherwise
encountered and with no negative impact on the patient care pathway. Its
CYP2C19 ID Kit which has no comparably positioned competitor currently allows
clinicians to make a decision on the use of Clopidogrel in stroke patients in
70 minutes, ensuring that patients who are unlikely to benefit from or suffer
adverse effects from Clopidogrel receive an alternative antiplatelet
therapeutic in a timely manner, ultimately improving outcomes. Both tests have
undergone review by the National Institute for Health and Care Clinical
Excellence ("NICE") and have been recommended for use in the UK NHS. The
Company has a clear commercial strategy focused on accelerating growth through
maximising in-market sales, geographic and portfolio expansion and strategic
M&A, and operates out of its facilities in Manchester.

 

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