(Alliance News) - Plant Health Care PLC on Monday announced and completed a USD4.6 million fundraise to help boost sales of its first PREtec products and improve working capital.
Plant Health first said it planned to conduct a placing and subscription aimed at raising, at a minimum, USD4.0 million through the issue of shares at 8 pence each.
This represented a sharp 44% drop from the 14.25p closing price on Friday, with shares on Monday falling 35% to 9.27p.
At the time of the first announcement, Plant Health had already conditionally raised around USD3.1 million via a 29.9 million share subscription.
Once complete, the placing and subscription raised a total of USD4.6 million.
Plant Health explained that the money raised would: "Strengthen the company's balance sheet and enable it to accelerate sales growth and commercialization of the first products from the company's ground-breaking PREtec (Plant Response Elicitor) technology, as well as providing additional working capital."
Participants included Chief Executive Christopher Richards, who increased his holding by 500,000 shares to 2.7 million shares, or a 1.1% stake.
Richards commented: "The board of Plant Health Care is delighted to have the support of shareholders in this fund-raise. The company is committed to delivering profitable revenue growth in line with market expectations and to driving the successful launch of the first products from the PREtec platform. These additional funds will ensure that the company is well resourced to deliver on this plan."
Non-Executive Chair Richard Webb subscribed for 250,000 shares, taking his total to 1.3 million shares or a 0.5% stake. Non-Executive Director William Lewis subscribed for 193,843 shares, taking his holding to 0.3% or 630,463 shares.
Chief Financial Officer Jeffrey Hovey subscribed for another 29,076 shares - his only holding - and Chief Operating Officer Jeffrey Tweedy 48,460, giving him 66,364 shares. Neither resultant holding represented a significant stake.
Arden Partners was Plant Health's nominated advisor and broker for the placing. A general meeting will be held March 16 to vote to approve the implementation of the fundraise.
By Anna Farley; annafarley@alliancenews.com
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Plant Health (PHC)