Excellent update from LexaGene. A must read. We are on our way. 2020 will be a big year.
Dear Shareholders and other interested parties.
Earlier today LexaGene, announced it closed a C$6.64 million financing. This is our largest raise to date which includes new retail and large institutional participation. Details of the financing can be found here. This raise solidifies our pathway to commercialization in 2020 and fuels our advancement toward market readiness.
Over the summer and fall, we have been beta testing our technology. We’ve placed beta instruments in the Massachusetts Veterinary Referral Hospital, in a cannabis reference testing laboratory called CDX Analytics, and in a human clinical diagnostics reference laboratory called Assurance Scientific Laboratories. We are proud to say, our beta instruments have generated very high-quality data with excellent concordance with standard testing methods (that are slower and take more time).
Our Beta clients have provided comments such as, “This will completely change what we do and how quickly we do it,” and “We are very impressed with the underlying science behind the way the LexaGene technology performs its analysis and believe it will be a game changer for the industry.” From our interactions with these beta testers and potential customers at conferences, we know there is strong demand for the LX technology.
In the coming weeks and months – we will continue beta testing our technology behind the scenes, as this builds market demand and is an important part of filling the sales funnel. We expect to announce more beta sites in veterinary diagnostics, and our other markets including food safety. We have done a tremendous amount of work in assay development and are working hard to make sure we will have the best tests on the market once we start selling our technology.
Occasionally, when a serious public health concern unfolds, we want to demonstrate to the street that our technology can be configured for many different purposes and be useful across different market verticals. One example is our recent work on Eastern Equine Encephalitis (EEE), which kills ~ 30% of those who develop symptoms. It is spread by the bite of a EEE-carrying mosquito. To illustrate that LexaGene can be part of the solution, our staff quickly demonstrated that our technology can be configured to detect RNA gene transcripts from mosquitos as well as transcribed EEE RNA.
From this and other work, we received some great news coverage from CBS Boston TV 4 and investor news outlets like Seeking Alpha and Investing News.
Most importantly in the coming weeks and months, we are working hard to lock down design of our commercial system, which will occur over the winter. We will be building out pre-commercial units to prepare for building a large number of commercial units for sale. Then we begin manufacturing, which is anticipated to take ~ 4 months as some of the parts are built to order. After a brief validation process – we will start selling our instruments, which is the milestone everyone has been waiting for. I assure you – we are working hard to hit this milestone as soon as possible.
To date we have been largely an R&D company, and now we are moving toward the pre-sales phase, including hiring sales talent.
This financing gives us the capital to support this effort – which is extremely exciting.
As always, thank you for your continued support.
Best,
Dr. Jack Regan – CEO and Founder of LexaGene
AI
