Renalytix announces financing with expected size up to $4M

Renalytix announces a registered direct offering of ordinary shares at a purchase price equivalent to $0.75 per NASDAQ ADS to DB Capital Partners Healthcare. The Fundraise was conducted by way of a securities purchase agreement between the Purchaser and the Company which consists of an initial tranche of 2,666,667 Ordinary Shares initially for an amount of $1.0 million with an optional subsequent tranche of Ordinary Shares at the option of the Purchaser. Both tranches are priced at $0.75 per NASDAQ ADS. The aggregate total amount for both tranches, if the option is fully exercised, is expected to be up to $4 million in total financing. The net proceeds of the Fundraise will be used to support commercial sales activity as the Company continues its Formal Sale Process, as previously announced. Highlights: The Fundraise comprises a $1 million registered direct offering of the Initial Tranche Shares at $0.75 NASDAQ ADS, and an optional subsequent tranche at the same purchase price, exercisable at the purchaser’s option until April 17, 2024. The sale and purchase of the Initial Tranche Shares and, if applicable, the Subsequent Tranche Shares shall complete no later than 11 April 2024 and 19 April 2024, respectively. The net proceeds of the Fundraise will be used to support commercial sales activity and provide enhanced optionality as the Company continues its ongoing Formal Sale Process, as previously announced. Pursuant to the securities purchase agreement entered into between the Company and the Purchaser on 5 April 2024, the Purchaser may, upon notice to the Company to be given no later than 5:00 p.m. New York time on 17 April 2024, subscribe for an optional subsequent tranche of Ordinary Shares. The Subsequent Tranche Shares shall not be more than such number of Ordinary Shares that the directors of the Company are authorised to allot and issue on a non-pre-emptive basis as of the date of the Subsequent Tranche Notice under the existing authorities granted at the Company’s Annual General Meeting held on 15 December 2023. Any additional funding to be raised from issuing and allotting Ordinary Shares or other securities above existing authorities available shall be subject to the Company securing further authorities to allot and issue on a non-pre-emptive basis through a general meeting. The completion of the sale and purchase of the Initial Tranche Shares is expected take place no later than 11 April 2024, subject to customary closing conditions. Upon Initial Closing, the Purchaser will hold 2,666,667 Ordinary Shares which is expected to be approximately 2.18% of the Company’s then issued share capital without taking into account any Ordinary Shares which may be allotted and issued from the date hereof and until the First Closing.