A SCOTTISH biotech firm that is developing home coronavirus tests has moved to raised £11 million to help scale up manufacturing and develop further Covid-19 testing opportunities.

Clackmannanshire-based Omega Diagnostics has already raised £8m in a heavily oversubscribed subscription of 20,000,000 new ordinary shares of four pence each to both new and existing institutional investors and a number of wealth managers at an issue price of 40 pence per new ordinary share.

It proposes to raise up to the additional £3m by the issue of up to 7,531,100 new ordinary shares at 40p which it said represents a discount of around 27 per cent to the closing mid-market price of 55 pence on Thursday.

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Directors have subscribed for a total of 122,500 shares. It said the discount reflects the rapid rise in the company’s share price from 11 pence in April, immediately prior to announcement of Omega’s participation in the UK Rapid Test Consortium.

Up to £10.5m will be used to exploit further coronavirus opportunities and it also plans to undertake work on its Visitect CD4 HIV-related products.

Colin King, Omega Diagnostics chief executive, said: “This fundraising marks another significant moment in the company’s development and we are pleased with level of support shown from our existing shareholders and new investors in the placing. The fundraising will allow Omega to capitalise on the current opportunities it has regarding Covid-19 and build a strong position in the global health diagnostic market by using its existing skill set and experience with lateral flow devices.

“Furthering these opportunities will allow the company to continue delivering on its mission to improve human health and well-being through innovative diagnostic tests and global partnerships.”

A general meeting is due on July 10 in Alva. Shares closed at 54p, down 1.8 per cent on Friday.