Genedrive urges shareholder support for equity financing ahead of vote

LONDON - Genedrive plc (LSE:GDR) has responded to online criticism from a major shareholder regarding its recently announced equity financing, urging investors to support the resolutions at the upcoming general meeting on October 15.

The medical diagnostics company addressed concerns raised by David Nugent, who holds a 10.1% stake in the company as of October 2. According to a company statement, Nugent has criticized the financing plan on bulletin boards and called for alternative funding methods.

Genedrive defended its decision, stating the equity financing announced on September 23 "was the only certain financing option available" after exploring "a wide range of alternative financing options." The company noted it had offered to engage with Nugent under a confidentiality agreement to allow due diligence, but this was not progressed.

The financing plan aims to extend Genedrive’s cash runway into Q2/Q3 2026. The company reported that demand from its retail offer alone reached approximately £0.68 million, below the £3 million minimum threshold needed to provide "a meaningful runway."

If approved, the plan includes warrants that could potentially raise an additional £7.25 million if fully exercised, supporting operations as the company targets EBITDA positivity in the second half of the financial year ending June 30, 2027.

CEO Dr. Gino Miele emphasized the company’s commercial position, noting it has "two commercial, CE-IVD approved and NICE-recommended pharmacogenetic tests" already in use across the UK. He warned that if the resolutions are voted down, it "would lead to an immediate material risk to the business."

The company cautioned that without the financing, its cash runway is "very limited," potentially requiring actions to protect creditors "in the coming weeks" that would likely "materially impact shareholder value."

The general meeting is scheduled for October 15, 2025, based on information from the press release statement.

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