Omega Diagnostics (ODX)  has raised gross proceeds of up to £11 million in order to capitalise on the opportunities across the global health market, including COVID-19 testing and scaling up its manufacturing capacity. 
 
The medical diagnostics specialist raised £8 million via a placing of 20,000,000 new ordinary shares of 4p each at an issue price of 40p per share, a 27% discount to Thursday’s closing mid-market price of 55p. 
 
Omega has also proposed to raise up to an additional £3m by issuing up to 7,531,100 shares pursuant to an Open Offer to qualifying shareholders at the same discounted issue price. 
 
The discount reflects the rapid rise in the company's share price from 11p on 8 April 2020, prior to the group’s announcement of its participation in the UK Rapid Test Consortium. 
 
Shares in Omega Diagnostics were trading 15.45% lower at 46.5p on Friday morning. 

The proceeds, amounting to between £7.5m and £10.5m depending on the take-up of the Open Offer, will be used to exploit the group’s COVID-19 testing opportunities and to scale up manufacturing, this morning’s statement outlined. 
 
They will also be used to improve the margin of the group’s VISITECT® CD4 products and expand its lateral flow product portfolio with VISITECT®’s complementary products. 
 
“The Fundraising will allow Omega to capitalise on the current opportunities it has regarding COVID-19 and build a strong position in the global health diagnostic market by using its existing skill set and experience with lateral flow devices,” said CEO of Omega, Colin King. 
 
Omega has said that it intends to develop COVID-19 tests ‘that will help to meet the different needs of global healthcare systems that require both antibody tests and antigen tests.’ 
 
"We look forward to being able to update the market on the progress made on our COVID-19 testing opportunities along with the opportunities available to the core business with VISITECT® CD4 and Food Intolerance,” added King. 
 
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Omega Diagnostics is a member of the Vox Markets Covid-19 Crusdaers Index.