Genetic Analysis

GA has announced a conditional share issue, receiving subscriptions for 14,889,576 new shares at NOK 0.86 each, potentially raising NOK 12.8 million before costs. The board has approved this and will propose it at the AGM on May 19, 2025. The subscription price matches the average trading price on the Spotlight Stock Market over the last 15 days up to April 24, 2025. The board invited certain shareholders and proposed board members to subscribe, with 23% of the issue taken by the board and management. This Directed Issue deviates from existing shareholders' preferential rights due to the need for quicker capital raising and market conditions. A Subsequent Offering is planned for shareholders not included in the Directed Issue, pending AGM approval. The Directed Issue will increase the number of shares by 30%, from 49,383,271 to 64,273,847, and the share capital by NOK 8,934,345.60. The funds will support ongoing projects and new business collaborations, particularly in microbiome diagnostics. An Innovation Norway Grant of NOK 1,125 million is also conditional on raising NOK 2.5 million from this equity offering. The company considers this issue essential for financial flexibility and future growth.

Shareholders of Genetic Analysis AS are encouraged to submit a proxy with voting instructions before the general meeting or notify the company if they wish to attend in person. The meeting agenda includes opening remarks, election of a chairperson, approval of the notice and agenda, and various resolutions regarding share capital increases, approval of annual accounts, and remuneration for auditors and board members. The board proposes a share capital increase through a directed issue, which requires deviation from existing shareholders' rights, but justifies this decision based on timing and cost considerations. A potential repair issue for smaller shareholders is also discussed. The board seeks approval for the annual accounts and proposes remuneration for the company's auditor. The election of new board members and their remuneration is outlined, along with the re-election of the nomination committee and their remuneration. The board also seeks authorization to increase share capital and acquire own shares, as well as to extend the share option program. Shareholders may appoint a proxy to vote on their behalf, and relevant documents are available on the company's website.

CEO Ronny Hermansen expressed enthusiasm for the proposal to appoint Morten Jurs as Chairman of the Board, highlighting Jurs' extensive experience in diagnostics, pharma, and mergers and acquisitions. Jurs is currently CEO of SpinChip Diagnostics and has a history of successful leadership in both public and private companies. Hermansen also welcomed Ove Öhman to the board, noting his entrepreneurial background in the life sciences and diagnostics industries. Additionally, Hermansen thanked Dr. Jethro Holter for his service as Chairman and wished him well in his new role as CEO of AdjuTec Pharma.

GA has announced a conditional share issue, receiving subscriptions for 14,889,576 new shares at NOK 0.86 each, potentially raising approximately NOK 12.8 million before costs. The board approved the subscriptions and will propose the issue at the AGM on May 19, 2025. The subscription price matches the average trading price on the Spotlight Stock Market. The board invited select shareholders and proposed board members to subscribe, with 23% of the issue taken up by the board and management. The Directed Issue deviates from shareholders' preferential rights, as a rights issue would take longer and expose the company to market fluctuations. The board deemed the Directed Issue beneficial for shareholders and plans a Subsequent Offering for those not invited to participate, contingent on AGM approval. The Directed Issue will fund collaborations, including with Ferring, and expand diagnostics in the microbiome field. The issue will increase the number of shares by 30%, and the share capital will rise from NOK 29,629,962.60 to NOK 38,564,208.20. The company faces financial risks due to limited liquidity but sees the issue as a means to enhance sales, marketing, and development projects. If additional capital isn't raised, strategic alternatives may be needed. Subscribers include BioRad Inc and various investment firms, with board and management members contributing as well. Total subscriptions amount to NOK 12,805,895.

The Chinese direct-to-consumer (D2C) microbiome testing market is experiencing rapid growth, with an estimated market size of USD 50-80 million in 2023 and a projected compound annual growth rate (CAGR) of 20-30%, potentially reaching USD 200-300 million by 2030. This growth is driven by increased consumer interest in gut health, probiotics, personalized nutrition, and advancements in e-commerce and digital health platforms like Tmall and WeChat. Thalys is launching a microbiome testing service in China using the GA-map® Dysbiosis Test, offering consumers a fast and affordable way to assess gut health. The service includes a mobile app for customers to subscribe, pay, and view results, providing insights into gut microbes and personalized health recommendations. This launch marks the first stage of a collaboration between Thalys and Genetic Analysis, with plans for further development and distribution of tests in China. The partnership involves Thalys investing in clinical studies and software development, while Genetic Analysis provides reagent kits and proprietary software. The collaboration is structured as an ongoing partnership without predefined order volumes, generating revenue for Genetic Analysis based on the number of tests sold. Thalys Group, a leading provider of medical supply chain management and IVD solutions in China, aims to be an innovative and trusted partner in healthcare. Genetic Analysis is a diagnostic company specializing in the human microbiome, with a vision to lead standardized gut microbiota testing worldwide.

Genetic Analysis (GA), under CEO Ronny Hermansen, reported record sales in Q4 2024, with a 63% increase compared to the previous year, reaching NOK 6.2 million. The company achieved its first positive EBITDA of NOK 0.4 million, marking a significant milestone. The GA-map® Dysbiosis Test sales grew 49% in Q4 and 37% YTD. A major agreement with Ferring Pharmaceuticals was signed to develop a new microbiome-based diagnostic test, targeting a launch in H1 2025. Financial highlights include an operating income of NOK 7.3 million in Q4, with a net loss of NOK 0.9 million. Operating costs decreased by 37% in Q4, attributed to reduced R&D expenses and general cost cuts. Significant events included share purchases by GA’s Head of Operations and CEO, and a collaboration with Ferring Pharmaceuticals to develop a new PCR test. No significant events were reported after the period. GA aims to lead in standardized gut microbiota testing globally.