(Alliance News) - DeepMatter Group PLC on Monday announced a placing and subscription to raise gross proceeds of GBP2.1 million and said that it is finalising a collaboration agreement with Swiss pharmaceutical company Novartis AG.
The Glasgow-based software company added that it has provided its DigitalGlassware cloud-based digital chemistry platform to Novartis as part of a potential agreement. DeepMatter already has collaborations with UK-based pharmaceutical company AstraZeneca PLC, the University of Nottingham, the University of Leeds and Cancer Research UK.
Of the GBP2.1 million, around GBP1.9 million will be raised through the conditional placing of 130.8 million new shares at 1.5 pence a share. The other GBP200,000 will be raised by way of a direct subscription with the company of 11.7 million shares at the same price.
The issue price represents a discount of 19% to Friday's closing share price of 1.85p. DeepMatter shares were down 8.1% at 1.70p each on Monday afternoon in London.
The proceeds will be used to further strengthen DeepMatter's balance sheet and to invest in sales, marketing, distribution and support. A particular focus will be put on growing its DigitalGlassware technology platform and cheminformatics product lines.
Proceeds will also be used to fund the company's expansion plans for the next two years.
DeepMatter Chief Executive Mark Warne said: "Since the successful conclusion of our Pioneer Programme in 2019, we have seen a steady increase of interest in our DigitalGlassware platform, which has subsequently been accelerated by the new socially-distanced working practices in labs around the world.
"As we transition from the research and development phase into full commercialisation, with a clear focus on sales execution, this additional funding will enable us to invest in our operations so that we can capitalise on this opportunity and deliver long-term growth in shareholder value."
By Greg Roxburgh; gregroxburgh@alliancenews.com
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