TSX higher on employment data
LONDON - Genedrive plc (AIM:GDR), a point of care pharmacogenetic testing company, announced Friday it will seek shareholder approval for a share capital reorganization to address funding challenges as its cash reserves dwindle.
According to a company press release, Genedrive’s current cash balance of approximately £700,000 provides runway only through mid-October 2025. The company is calling a general meeting for September 15 to approve a reorganization that would reduce the nominal value of its shares from 1.5 pence to 0.015 pence.
The reorganization has become necessary as Genedrive’s share price has fallen below the nominal value of its existing shares. The closing price on August 27 was 0.78 pence, representing a 48 percent discount to the nominal value. UK law prohibits companies from issuing new shares below their nominal value.
Under the proposed reorganization, each existing ordinary share would be subdivided into one new ordinary share and 99 deferred shares with limited rights. This would allow the company to issue new shares at market prices to raise additional capital.
Genedrive reported it expects to double its total income to approximately £1 million for fiscal year 2025, driven by increased sales momentum in the second half. The company cited several upcoming catalysts, including Scotland’s planned implementation of its MT RNRI ID Kit and CYP2C19 Point of Care Pilot expected to begin in October.
The company is also seeking shareholder approval to grant directors authority to allot up to 400 million new ordinary shares, which could dilute existing shareholders by up to 39 percent.
Genedrive directors, who collectively hold approximately 1.41 percent of existing shares, unanimously recommend shareholders vote in favor of the resolutions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.