Quotient Limited Announces Proposed Underwritten Offering

Rhea-AI Summary

Quotient Limited (Nasdaq: QTNT) has announced a planned underwritten public offering of $20 million in ordinary shares, as well as pre-funded warrants for certain investors. The company aims to utilize the proceeds for the development of its MosaiQ microarray menu, working capital, and operating expenses. Additionally, underwriters will have a 30-day option to purchase an extra 15% of the offered shares. This offering is subject to market conditions, and Quotient has filed the necessary registration with the SEC.

Positive

• Planned public offering of $20 million which may boost capital for business operations.
• Proceeds aimed at funding MosaiQ microarray development, potentially enhancing product offerings.

Negative

• Offering could dilute existing shareholders' equity.
• Market conditions are uncertain, posing risks to completion and terms of the offering.

JERSEY, Channel Islands, June 23, 2022 (GLOBE NEWSWIRE) -- Quotient Limited (Nasdaq: QTNT) (the Company), a commercial-stage diagnostics company, today announced the Company intends to commence an underwritten public offering of $20 million of its ordinary shares and, to certain investors in lieu of ordinary shares, pre-funded warrants. All of the securities to be sold in the offering will be offered by the Company. In addition, the Company intends to grant the underwriters a 30-day option to purchase up to an additional 15% of the ordinary shares sold in the public offering. The offering is subject to market conditions, and there can be no assurance as to whether or when the offering may be completed, or the actual size or terms of the offering.

The Company intends to use the net proceeds of the offering to fund the ongoing development and commercialization of its MosaiQ microarray menu and for working capital, operating expenses and other general corporate purposes.

Jefferies LLC and Cowen and Company, LLC are acting as joint book-running managers for the offering.

The securities in the public offering described above are being offered pursuant to the Company's shelf registration statement on Form S-3, as amended by Amendment No. 1, filed with the Securities and Exchange Commission (SEC) on August 21, 2020 and on September 2, 2020, respectively, and declared effective by the SEC on September 4, 2020. The offering will be made only by means of a written prospectus and prospectus supplement that form a part of the registration statement. A preliminary prospectus supplement and accompanying prospectus relating to the offering will be filed with the SEC and will be available on the SEC's website at www.sec.gov. Copies of the preliminary prospectus supplement and the accompanying prospectus, when available, may also be obtained from Jefferies LLC, Attention: Equity Syndicate Prospectus Department, 520 Madison Avenue, 18^th Floor, New York, New York, 10022, or by telephone at (877) 821-7388 or by email at prospectus_department@jefferies.com; Cowen and Company, LLC, c/o Broadridge Financial Services, 1155 Long Island Avenue, Edgewood, NY 11717, Attention: Prospectus Department, or by telephone at (833) 297-2926 or by email at PostSaleManualRequests@broadridge.com.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities being offered, nor shall there be any sale of the securities being offered in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.

About Quotient Limited

Building on over 30 years of experience in transfusion diagnostics, Quotient is a commercial-stage diagnostics company committed to delivering solutions that it believes reshape the way diagnostics are practiced. The MosaiQ solution, Quotient’s proprietary multiplex microarray technology, offers the world’s first fully automated, consolidated testing platform, allowing for multiple tests across different modalities. The MosaiQ solution is designed to be a game-changing solution, which Quotient believes will increase efficiencies, improve clinical practice, deliver significant workflow improvements, and create operational cost savings to laboratories around the world. Quotient's operations are based in Switzerland, Scotland, US and the UAE.

The Quotient logo, Quotient MosaiQ and MosaiQ are registered trademarks or trademarks of Quotient Limited and its subsidiaries in various jurisdictions.

Forward Looking Statements

This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. These forward-looking statements may include statements regarding the proposed underwritten public offering, including the anticipated offering size. Such statements are based on current assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially, including: market conditions; Quotient's ability to satisfy closing conditions related to the proposed offering; and other risks set forth in Quotient's most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q, as well as other documents that Quotient files with the Securities and Exchange Commission, including the Registration Statement on Form S-3 (File No. 333-248235), as amended by Amendment No. 1, for the offering. Investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Quotient disclaims any obligation to update these forward-looking statements because of new information, future events or circumstances or other factors. The Quotient logo, Quotient MosaiQ and MosaiQ are trademarks or registered trademarks of Quotient Limited or its subsidiaries in various jurisdictions.

FAQ

What is Quotient Limited's planned public offering amount?

Quotient Limited announced a planned public offering of $20 million.

What will Quotient Limited use the proceeds from the offering for?

The proceeds will be used for the development of the MosaiQ microarray menu and for working capital.

Is there a risk of shareholder dilution with Quotient Limited's offering?

Yes, the planned public offering could result in dilution of existing shareholders' equity.

Who are the underwriters for Quotient Limited's offering?

Jefferies LLC and Cowen and Company, LLC are acting as joint book-running managers for the offering.

What additional option do the underwriters have regarding the offering?

The underwriters have a 30-day option to purchase an additional 15% of the ordinary shares sold.