16 Dec 2010: NorDiag ASA has completed a private placement of 6,206,528 shares. The capital increase is carried out on basis of the board authorization granted by the Annual General Meeting on 4 May 2010, and was executed as a private placement with  the largest shareholders in the company as participants. The price per share in the private placement was NOK 1.80, giving gross proceeds of NOK 11,171,750 million to the company.  The price was set based on a book-building process.

"This will secure satisfying working capital for improving margins and for the substantial growth the company expects going forward to break even, and at the same time fund further development of the unique Arrow technology into a fully integrated system", says CEO Mårten Wigstøl. 

The use of proceeds received is planned as follows: 

•         Investment of NOK 6 -7 million in production facilities and production equipment for automated filling and sealing of Arrow cartridges. The equipment is previously partly financed by a loan from Innovation Norway. It is expected that the investment will improve the margins (sales price - total production cost) by 20-30% and give extensive capacity to meet expected demand for the Arrow product line.
•         NorDiag plans to integrate an analysis unit (cycler) in the existing Arrow frame. The strategic rationale for building an integrated system is to leverage the success of the Arrow and offer an affordable desk top fully integrated system to the market. The system will be generic, which imply that external test providers will be able to use the system for their tests. NorDiag needs to invest NOK 2 - 3 million into a prototype cycler.
•         The current run rate for Arrow instruments and reagents indicates that NorDiag must prepare for stronger than previously communicated growth, and the company has estimated that it needs NOK 3 million in additional working capital to fund expected growth and ramp up of production.   
 
It is expected that payment for the new shares will be received by 20 December 2010, and that registration and delivery of the new shares will take place on or about 23 December 2010. Following registration of the new shares, the share capital of the company will be NOK 68,603,145 divided on 68,603,145 shares, each at a nominal value of NOK 1.
 
Contact:
CEO Mårten Wigstøl                Phone. +47 911 65775
CFO Tone Kvåle                       Phone: +47 915 19576
 
 
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About NorDiag:
NorDiag is a biotechnology company developing, manufacturing and marketing automated solutions (instruments and tests) for sample preparation of DNA from difficult biological samples. DNA diagnostics give more rapid and precise answers, and are the fastest growing field within diagnostics. The company's sample preparation solutions are today used in connection with STI, tuberculosis, MRSA, respiratory pathogens and viruses on instruments for large and small laboratories. NorDiag was founded in 2003 and has its headquarters in Oslo, Norway. The company has offices and laboratories in Stockholm, Sweden, in West Chester (PA), USA and in Vienna, Austria. The group has today 37.5 man-labour years. NorDiag is listed on Oslo Stock Exchange with ticker NORD.
 
For further information - www.nordiag.com.
This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)

Read the notice in Norwegian here