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(Alliance News) - OptiBiotix Health PLC on Friday said it has raised GBP1 million through the placing of 2.5 million shares at 40 pence each.
Shares in the life sciences firm were trading 2.1% lower at 47.99p each on Friday afternoon in London.
OptiBiotix said certain directors subscribed for 128,750 shares in total, with Chief Executive Stephen O'Hara taking his stake in the company to 12% through the subscription for 62,500 shares.
The company said the new funds will be used to pursue opportunities corporate and large retail partners in relation to its SweetBiotix products, as well as other commercial opportunities. It added that it intends to launch its products in China, the US, and India, expand its presence in the US, and scale up additional SweetBiotix products.
SweetBiotix is OptiBiotix's sweetener. The company said the study of SweetBiotix found that it improved "the number and activity of bacterial species typically associated with good gut health when compared to current natural sweeteners".
Following admission of the new shares, the company will have 87.9 million shares in issue.
"The company has received a high level of partner interest in its technology and products across new application areas and new territories that have the potential for significant value uplift. It has become clear that there is a window of opportunity to exploit interest in SweetBiotix across multiple applications and the potential for listing existing products with major retailers in large international markets, said O'Hara.
"This may not be achievable in the short term with the current resources. Rather than delay these opportunities until OptiBiotix has sufficient revenues to cover costs, the board has decided to take additional funds to capitalise on these growth opportunities and build shareholder value," he added.
By Ife Taiwo; ifetaiwo@alliancenews.com
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