Bionexus Gene Lab Corp - Buys 15% Equity Stake In Fidelion Diagnostics

Investing.com -- BioNexus Gene Lab Corp. (NASDAQ:BGLC) stock fell 3.8% Tuesday after the precision oncology diagnostics provider announced it has entered into a $500 million Equity Purchase Agreement with ARC Group International Ltd.

The 36-month facility allows BioNexus to issue and sell registered shares of its common stock to ARC at its sole discretion. As compensation for ARC’s commitment, BioNexus issued 175,000 shares of common stock as a one-time fee, priced at $4.32, the closing price on November 26.

The agreement prohibits ARC from owning more than 9.99% of BioNexus’s outstanding shares at any time and restricts the investment bank from short-selling or hedging the company’s securities. BioNexus will file a registration statement for the resale of shares issued under the facility, with no shares to be sold prior to registration.

This new facility complements BioNexus’s previously announced $20 million At-The-Market program, providing additional financial flexibility as the company pursues strategic initiatives including the commercialization of its VitaGuard minimal residual disease platform in Southeast Asia.

"This commitment from ARC strengthens our capital position at a pivotal time for BGLC," said Sam Tan, Chief Executive Officer of BioNexus Gene Lab Corp. "We intend to draw from this resource selectively and responsibly as we advance our diagnostics, CDMO, and therapeutic commercialization programs."

The company is expanding its operations across Southeast Asia and working to add contract development and manufacturing organization services to its regional business portfolio.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Investing.com -- BioNexus Gene Lab Corp. (NASDAQ:BGLC) stock surged 10% after the precision oncology diagnostics provider secured a $500 million equity facility from ARC Group International.

The 36-month agreement allows BioNexus to issue and sell registered shares of its common stock to ARC at its sole discretion. As part of the deal, BioNexus issued 175,000 shares of common stock to ARC as a one-time fee, priced at $4.32 per share.

The equity facility complements BioNexus’s previously announced $20 million At-The-Market program, providing additional financial flexibility while maintaining control over capital deployment timing.

"This commitment from ARC strengthens our capital position at a pivotal time for BGLC," said Sam Tan, Chief Executive Officer of BioNexus Gene Lab Corp. "This Facility is entirely at our discretion and is intended to support milestone-driven initiatives rather than routine financing."

The company plans to use the facility to advance strategic initiatives, including the commercialization of its VitaGuard™ minimal residual disease platform in Southeast Asia. On November 28, BioNexus executed a licensing agreement with Fidelion Diagnostics to commercialize the VitaGuard™ MRD assay across Malaysia, Singapore, Indonesia, and Thailand.

Additionally, the funding will support BioNexus’s expansion into contract development and manufacturing organization services and advance therapeutic opportunities, including a potential partnership with BirchBioMed for FS2, a topical therapeutic candidate targeting fibrosis and skin regeneration.

Under the agreement, ARC is prohibited from owning more than 9.99% of BioNexus’s outstanding shares and is restricted from short-selling or hedging the company’s securities.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.