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The OneVentures Partners invite you to attend an exclusive investor lunch for a business and financing briefing from the Clinical Genomics executive team.
On Tuesday 17 September, Betsy Hanna (CEO, Clinical Genomics) and Roger Moody (CFO, Clinical Genomics) will provide OneVentures investors with a business update focusing on the Company’s key developments, and a comprehensive financing update, including a new investment round led by Quest Diagnostics. They will be joined by Dr. Nick Conti (VP Corporate Strategy, Quest Diagnostics) who will provide insight on Quests’ planned investment and commercialization strategy to launch the first widely-adopted CRC (Colorectal Cancer) screening blood test in the US market.
Clinical Genomics is offering all investors the opportunity to participate in this financing, as well as offering convertible note holders the option to convert with enhanced terms in this round.
To be covered
The opportunity and offer
Existing investors are offered the opportunity to participate in a preferred stock financing round which is expected to lead into a larger, pre-Nasdaq IPO round. Convertible note holders are also invited by the Company to convert into the Series A preference shares, under the following preferential terms: (a) conversion to preferred vs. ordinary shares, (b) favourable company valuation ahead of significant value-driving milestones in the next 6 months, and (c) potential exit value that surpasses other conversion or redemption scenarios.
Quest Diagnostics (NYSE: DGX) continues to support the Company financially and commercially, and views CGT’s new ColveraDS blood test for CRC screening as a strategic growth pillar. Clinical Genomics is in final stages of negotiating terms with Quest to lead this financing round by investing US$20M, at a pre-money valuation of US$200M, which includes the conversion of Quest’s outstanding convertible notes.
Under the convertible note terms, notes automatically convert into ordinary shares at a sale of the business or IPO, currently at a 35% discount. This discount increases to 45% in April 2020. The notes are redeemable by the Company at any time.
Management will outline the current status of the business and the financing, as well as the near term milestones that may reflect a significant increase in company valuation leading into a potential crossover round and Nasdaq IPO.
The Company is working to ensure it has the resources needed to execute on these near-term plans and attract further capital. Additionally, management will provide investors with an update on the feedback from highly active U.S. healthcare banks on milestones that would enable it to execute a Nasdaq IPO.
Investment in high-value cancer diagnostics and liquid biopsy testing companies validates the attractiveness of markets where Clinical Genomics has a leadership position. Value created by companies in these markets supports a sustainable environment for future fundraising and investor liquidity. Notable examples include Guardant Health’s (GH) IPO last year at $1.6Bn and new private company financings exceeding $100M, including Thrive and Freenome. Additionally, recent multi-billion-dollar acquisitions by Roche and Exact Sciences further underscore the value creation in these markets.
Business update – key developments
The Company is achieving positive results from changes initiated late 2018 and progressing into 2019.
Results from these changes include:
Substantial improvement in profit from the InSure business.
Achievement of critical milestones from blood-based tests, Colvera for CRC monitoring and ColveraDS for CRC screening, positioning the Company for growth.
Progress towards further capitalising Clinical Genomics and increasing shareholder value.
Colvera for CRC recurrence monitoring
The Company achieved key milestones including completion of enrolment in the NOVA study to support the application for Medicare reimbursement for Colvera, which should accelerate test adoption. The application remains on track for submission in the fourth calendar quarter.
ColveraDS for screening
In July, Clinical Genomics achieved an important step with a second pre-submission meeting with the U.S. Food and Drug Administration (FDA), the outcomes of which were positive. Additional FDA discussions provide confidence that the study design can support a Premarket Approval (PMA) while substantially reducing relative time and costs.