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Ally Bridge to inject capital into Biocept
Posted on Friday, 11 August 2017 07:54
Hedge fund manager Ally Bridge is investing USD 2.20 million in Biocept, a cancer diagnostic devices manufacturer listed on Nasdaq, via its entity Ally Bridge LB Healthcare Fund.
Under the terms, the public group is issuing 1.47 million stocks, which account for 5.2 per cent of its enlarged capital, at USD 1.50 apiece.
The purchaser is also subscribing to warrants to obtain a maximum of another 1.43 million shares in the target at the same price.
Biocept’s cancer diagnostic equipment allows health professionals to perform tests on patients using just simple blood samples, rather than having to carry out invasive tissue biopsies.
The group posted net revenue of USD 1.28 million in the three months ended 30th June 2017, up 92.9 per cent on the USD 662,860 recorded during the same timeframe in the previous year.
Net loss and comprehensive loss for the period totalled USD 5.69 million, compared to USD 4.59 million in the corresponding interval in 2016.
By collaborating with the purchaser and its affiliate in China, the San Diego, California-based firm is seeking to expand in the world's second largest economy, where it has already obtained patents for its technology.
Commenting on the target, Ally Bridge’s chief investment officer Bin Li said: “Biocept's molecular diagnostics platform is unique in its ability to analyse both circulating tumour cells (CTCs) and circulating tumour DNA (ctDNA) with very high sensitivity and low cost.”
“We believe the company's technology has potential to improve the standard of care for cancer patients in the US and in China."
Besides Ally Bridge, Biocept is also in the process of raising USD 9.29 million from institutional investors in a private placing for working capital and general corporate expenses.
According to Zephyr, the M&A database published by Bureau van Dijk, there have been 270 announced or completed deals targeting medical instruments makers worldwide in 2017 to date.
© Zephus Ltd