LONDON (Alliance News) - WideCells Group PLC shares plummeted Monday as the company's stock was restored to trading after it completed a share placing raising a total of GBP2.0 million and updated the market on its finances.
Shares in the healthcare services company were down 27% at 3.05 pence each.
WideCells reported that the Live Market Bookbuild which began May 10 has now closed, raising GBP513,000. This raised total gross funding commitments to GBP2.0 million which will be used to expand the company's core end-to-end stem cell services.
The directors of the company participated in the placing, collectively subscribing for 6.1 million placing shares for a total of GBP183,000 of the GBP513,000 committed.
In a separate announcement, the stem cell focused healthcare company said its net bank overdraft is at GBP614,533 against an overdraft facility of GBP624,500.
The company has calculated that it needs to raise GBP1.5 million to enable it to continue operating as a going concern. Completion of the placing "will satisfy the working capital requirements", according to WideCells.
If the placing is not complete by June 29, or alternative funding found, the company will not be able to continue trading as a going concern, it said.
Chief Executive Officer Joao Andrade said: "With this placing and bookbuild receiving subscriptions to raise gross proceeds of GBP2 million, which includes continued support from institutional shareholders, we are delighted that investors continue to recognise the strong value fundamentals of our business, which we firmly believe in, as can be indicated through a number of directors participating in this placing. Our focus now is to drive uptake of our innovative portfolio of stem cell services and ultimately build revenues as we embark on a new phase of growth. We look forward to providing further updates in due course."
