(Sharecast News) - Personalised healthcare company Concepta has conditionally raised gross proceeds of ?1.9m via a placing and subscription, and the issue of convertible loan notes, it announced on Wednesday.
The AIM-traded firm said the net proceeds of around ?1.74m would be used to strengthen and develop its digital marketing effort, and appoint core marketing personnel.
It would also be used to provide additional working capital requirements to refine the company's manufacturing provision, and target strategic commercial contracts to exploit its 'myLotus' product and technology nationally, then internationally.
Finally, Concepta said it would use the funds to invest in developing and extending its portfolio to capture and provide greater insight into fertility for women and couples, to maximise their chance of conception, as well as to continue to develop and improve its internal systems, controls and compliance including its digital 'app' developments, software, algorithms and data capture.
Concepta said the conditional placing of 112,187,500 new ordinary shares was with new and existing investors, with the conditional subscription of 112,687,500 new shares being by funds managed by Mercia Asset Management, and various directors of the firm.
The conditional subscription for ?0.1m of convertible loan notes was made by Mercia.
It said the fundraising remained subject to shareholders approving resolutions to increase the directors' authority to allot the placing and subscription shares and the new ordinary shares that would be required on exercise of the convertible loan notes, as well as ordinary shares up to the nominal value of ?88,315.
Concepta also proposed the subdivision of each existing ordinary shares of 2.5p into one ordinary share of 0.1p and one deferred share of 2.4p.
"We are very grateful for the continuing support from our existing shareholders and welcome new investors who have participated in the placing and subscription, in particular the support shown by our largest shareholder Mercia," said chief executive officer Penny McCormick.
"This fundraise provides us with a solid platform from which to drive the commercial success of our flagship self-test fertility test myLotus.
"I remain confident that we have a business with substantial upside opportunity and these funds will allow us to deliver upon its potential."
At 1148 BST, shares in Concepta were down 6.98% at 1p.
25 Oct 2019 11:13
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