Physiomics Regulatory News (PYC)

27 May 2020

Physiomics plc

("Physiomics") or ("the Company")

Fundraise

Physiomics completes £0.83m (gross) fundraise to fund growth opportunities

Physiomics plc (AIM: PYC), the oncology consultancy using mathematical models and its Virtual Tumour™ technology to support the development of cancer treatment regimens and personalised medicine solutions, is pleased to announce that it has completed a placing and subscription, conditional on Admission, to raise approximately £828,750 (gross) from the issue of 23,678,571 new ordinary shares of 0.4p each ("Ordinary Shares") at an issue price of 3.5p per share, through Hybridan LLP (the "Fundraise").

In the last few years, the Company has made significant progress, including:

• 70% compounded annual growth in total income FY 2017- 2019, culminating in its highest ever total income in FY 2019 of £783k

• >£1m of contracts announced with Merck KGaA since master services agreement announced in November 2017

• Significant new clients CellCentric Ltd (Apr 2018) and Bicycle Therapeutics plc (June 2019) added and repeat contracts signed with both

• Completion of a second Innovate UK grant project focused on personalised treatment of advanced prostate cancer (May 2019) and subsequent presentation of results at NIHR event at Royal Marsden Hospital

• Award of NIHR i4i grant (March 2020) to undertake an observational trial to generate data in support of personalised dosing tool in advanced prostate cancer

• Entering into discussions with companies with an established presence in the field of personalised medicine with a view to exploring how its technology could be commercialised

On 3 March 2020, the Company announced, as part of its unaudited interim results statement, that it held cash and cash equivalents of £434k as at 31 December 2019 and that it had achieved a small positive cash inflow for the six months ended on the same date. On 19 March 2020, the Company further confirmed that it had a strong pipeline of work and the Directors believe that this has been further strengthened since that announcement.

In this regard, in the last two working days, the Company has received a strong indication that a significant contract is likely to be signed with a new large pharmaceutical client, with which it has been in discussions since late 2019. While is it still possible that the potential new client could withdraw, it is the Directors' opinion that this is unlikely. Should the contract be signed, the work is expected to take two of our technical staff around five months to complete.

In order to further develop its business, the Company is raising funds through the Fundraise to enable it to carry out activities including increasing its sales & marketing spend, recruiting a further member of its technical team and further investing in its personalised medicine technology as well as for general working capital purposes. 

Director Participation in the Fundraise

Dr Jim Millen (CEO), Dr Paul Harper (Chairman) and Dr Christophe Chassagnole (COO) have participated in the Fundraise in the amounts of £3,000, £5,000 and £3,000 respectively (the "Directors' Participation") and will be issued 85,715 Ordinary Shares, 142,857 Ordinary Shares and 85,715 Ordinary Shares respectively. On Admission, Dr Millen, Dr Harper and Dr Chassagnole will be interested in, in aggregate, 530,356, 668,564 and 602,723 Ordinary Shares respectively, representing 0.55%, 0.70% and 0.63%, of the Company's then enlarged issued share capital.

Admission and total voting rights

Application will be made for the new Ordinary Shares to be admitted to trading on AIM and dealing is expected to commence on 3 June 2020 ("Admission"). Following Admission, the number of Ordinary Shares in issue will increase to 95,588,965.

For the purposes of the Financial Services Authority's Disclosure Guidance and Transparency Rules (the "DTRs"), the issued ordinary share capital of the Company following Admission will consist of 95,588,965 Ordinary Shares with voting rights attached (one vote per Ordinary Share). There are no Ordinary Shares held in treasury. This total voting rights figure may be used by shareholders as the denominator for the calculations by which they will determine whether they are required to notify their interests in, or a change to their interest in, Physiomics under the DTRs. The Company's share capital additionally comprises 2,481,657,918 deferred shares of 0.036p each which are not quoted and to which no voting rights attach.

Dr Jim Millen, CEO said: "We are delighted by the response to this over-subscribed fundraise. We thank our current shareholders for their continued support and have achieved another milestone by welcoming our first small-cap institutional fund onto the register. We believe this is reflective of our strong commercial traction over the last four years. 

Our team is committed to continuing to support global pharma and biotech companies in their drug discovery and development endeavours, and these funds will be mainly focused on growing our already strong pipeline of new business opportunities. I look forward to continuing to update shareholders on our progress."

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014.

Enquiries:

Physiomics plc

Dr Jim Millen, CEO

+44 (0)1865 784 980

Strand Hanson Ltd (NOMAD)

Richard Tulloch & James Dance

+44 (0)20 7409 3494

Hybridan LLP (Broker)

Claire Louise Noyce

+44 (0)20 3764 2341

Notes to Editor

About Physiomics

Physiomics® is an oncology consultancy using mathematical models and its Virtual Tumour™ technology to support the development of cancer treatment regimens and personalised medicine solutions. The predictive capability of Virtual Tumour has been confirmed by 55 projects, involving over 25 targets and 60 drugs, and has worked with clients such as Merck KGaA, Merck & Co, Bayer and Lilly.

Based in Oxford UK, the Company works with clients worldwide to support their pre-clinical and clinical oncology development programs. Its team of scientists and computer modelling experts provide bespoke solutions encompassing data, analytics and insight.

Physiomics senior management has academic and commercial expertise, including over 90 years collectively of working in oncology and/or computational biology and over 100 publications in peer reviewed journals.

For more information please visit:

www.physiomics-plc.com

www.twitter.com/Physiomics

www.linkedin.com/company/physiomics-plc/

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