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Sona Nanotech (CSE:SONA) to progress COVID-19 test development with $2M financing

Health Care
CSE:SONA
03 December 2020 15:15 (EDT)
Sona Nanotech (CSE:SONA)- CEO, David Regan

Source: Entrevestor

Sona Nanotech (SONA) is planning to raise up to C$2 million to support the development of its rapid COVID-19 antigen test.

Under the terms of the financing, the Halifax-based diagnostic test developer intends to issue 2 million units at a price of $1.00 each. These units will be comprised of one common share in Sona Nanotech as well as one-half of a common share purchase warrant.

Each whole warrant will be exercisable at a price of $1.25 per share for a period of 24 months from the date of issuance.

According to today’s release, the proceeds will be used primarily to produce further clinical trial data for its rapid COVID-19 antigen nasal pharyngeal test and to pursue additional clinical trial validation work for a saliva-based version of the test.

A portion of the funds will also be used to pursue a European regulatory self-certification CE Mark declaration, for which Obelis SA has been appointed to complete.

Since 1988, Obelis – a regulatory and compliance consulting service provider – has helped more than 3,000 manufacturers from over 60 countries to introduce their products to the European market.

Sona Nanotech will now work with Obelis – as an authorised representative – to compile the necessary technical documentation to show that the company’s In-Vitro Diagnostic Devices meet the necessary CE Marking requirements.

Sona Nanotech also said it will work with its contracted manufacturer to complete its technology transfer batch production runs.

Using a pregnancy-type lateral flow test that eliminates the need for laboratory equipment or specially-trained health professionals, the company’s rapid COVID-19 antigen test is capable of producing results in as little as 15 minutes.

Sona Nanotech is currently down 2.94 per cent to $0.99 per share at 12:13pm EST.

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