On October 15, 2024, the shareholders of Genetico (MOEX: GECO) will convene for an absentee extraordinary meeting to deliberate on the proposed increase in the company’s authorized capital.
Vladimir Kaimonov, Director of Genetico, has stated that the authorized capital will be increased through a private offering of seven million additional shares, representing approximately 8% of the newly increased authorized capital.
As part of the private offering, Genetico shares will be purchased by Artgen Biotech Group companies.
Genetico share price will be determined at a later date by the company’s Board of Directors. This will be based on the weighted average share price over the past few months, which suggests an offering value above current market prices. The potential investment volume may reach RUB 240 million.
Consequently, the stake held by Artgen Biotech Group companies in Genetico will increase from the current 76.25% to 78.10% as a result of the offering.
The primary objective of the private offering is to repay the bonded loan issued to Genetico. Despite an improvement in revenue and EBIDTA, the company has elected not to restructure its borrowed liabilities but to repay the loan using borrowed funds instead.
Genetico intends to use a part of the raised funds to advance its pipeline of gene therapy drugs for the treatment of orphan diseases.
Genetico Center is a part of Artgen Biotech Group (MOEX: ABIO), a resident of both Skolkovo and Medtech Tech Park. The company operates in the field of medical genetics and genetic research, introducing innovative solutions for the diagnostics, prevention, and treatment of genetic and socially significant diseases into healthcare practice.