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(Alliance News) - Medical technology firm Feedback PLC said on Monday that it plans to raise GBP2.0 million through a share placing and subscription in order to develop its Bleepa clinical messaging product.
The company said 166.7 million new shares will be issued at 1.20 pence each, a 17% discount to Friday's closing price of 1.40p per share. The funds will allow the company to build a sales team for the product.
Shares in Feedback were down 2.9% at 1.36p each in London on Monday morning, giving it a market capitalisation of GBP5.1 million.
Non-Executive Chair Alastair Riddell said: "I am delighted with the support shown by new and existing shareholders for our new product Bleepa. We believe Bleepa is set to transform the outlook for the Company and could change the way medical images are communicated in everyday clinical practice on mobile devices and laptops."
Feedback said it will seek shareholder approval for the placing at a general meeting on August 29, with admission of the new shares on AIM expected on the following day.
Finance Chief Lindsay Melvin has subscribed to 416,667 new shares and will now own 1.1 million company shares. Medical Director Rory Shaw subscribed to 4.2 million new shares, he previously did not own any company shares.
The company also said that Chief Executive Tom Oakley was granted the option of new shares which would represent 2.5% of the company's issued capital following the placing. Feedback said this was done to "incentivise key members of the management team".
During the general meeting, Feedback will seek shareholder approval to increase the number of share options that can be granted under its enterprise management scheme. Currently, over a 10-year, only 10% of the company's total share capital can be granted as part of the EMI scheme, the proposed amendment would increase the threshold to 13%.