Quotient Ltd (NASDAQ:QTNT)
Quotient Ltd (NASDAQ:QTNT) shares gained 11.9% after the diagnostics company reported positive concordance data from MosaiQ Verification and validation studies in blood grouping. According to the Chief Executive Officer, Paul Cowan, 99.8% blood grouping concordance demonstrates the robustness of MosaiQ as a diagnostics platform.
MosaiQ Platform Development
The positive study results mark an important milestone in the development of the highly informative and disruptive testing platform for transfusion diagnostics. Quotient Limited has also demonstrated feasibility of the platform with respect to detection of nucleic acids.
Over the next 12 months, Quotient Ltd (NASDAQ:QTNT) plans to carry out European field trials and then file for European regulatory approval. MosaiQ European commercialization has already began with the company expecting tender offers in FY2018.
Quotient Ltd (NASDAQ:QTNT) stock gapped higher on the news – touching highs of $5.52 a share before it dropped to end Wednesday’s trading session at $5.19.
In addition, Quotient Ltd (NASDAQ:QTNT) has entered into agreements with certain shareholders for the issuance of 7.9 million shares priced at $4.64 a share. The company has also issued 550,000 pre-funded warrants at $4.75 and exercisable for up to 550,000 ordinary shares, priced at $0.01 per ordinary share.
Quotient Ltd (NASDAQ:QTNT) expects aggregate proceeds of $40 million from the private placement. The company expects an additional $49 million on the exercise of 8.4 million warrants priced at $0.125 a warrant. Net proceeds from the offering are to be used to fund the ongoing development and commercial scale-up of MosaiQ and for working capital among other general corporate purposes. The offering should close on or about October 26, 2017.
“I am also pleased that we have strengthened our balance sheet through our recently announced private placement, which was led by a small group of existing shareholders, with participation by directors and management. This financing is an added vote of confidence for what we have achieved to date and what we have the potential to achieve in the future,” said Mr. Cowan.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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About the author: Monica has an undergraduate degree in Accounting and an MBA she earned – with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.