Reverse takeover sees diagnostics business enter AIM
A REVERSE takeover has seen York-based Concepta Diagnostics begin trading on the Alternative Investment market.
The business, which specialises in developing digital fertility and pregnancy test products, was founded by a group of experienced scientists who previously worked for Unipath in the fields of fertility and women’s health.
It has now moved to AIM by way of a reverse takeover of Frontier Resources International, with the combined group renamed Concepta plc.
Prior to its listing, Concepta received investment totalling £2.3m from Finance Yorkshire’s Seedcorn Fund alongside Diagnostic Capital and the Angel CoFund, with Mercia Technologies investing £400,000 in Concepta earlier this year.
Frontier intends to raise £3.5m in new funds to support the continued growth of the business with Mercia investing a further £1m.
Following the latest transaction, Mercia will hold approximately 18.34% of Concepta’s share capital.
Mark Payton, chief executive officer of Mercia Technologies PLC, said: “Concepta Diagnostics is Mercia’s third direct investment emanating from Yorkshire, two of which have been from the Finance Yorkshire Seedcorn portfolio. This is testament to the quality of regional tech opportunities in the region which we have been very impressed with.
“The progress made by the management team at Concepta is significant and we are delighted that it has been admitted to AIM as we look forward to helping the company grow further over the months and years to come.”
Finance Yorkshire chief executive Alex McWhirter said it was “very pleasing to have been involved in the shaping of this innovative technology company and to see it grow to the global potential it enjoys today.”
Concepta’s product range has achieved registration in one of its largest target markets, China, where the abolition of the country’s one-child policy is expected to drive significant demand for a cost-effective, at-home fertility monitoring system as parents seek to have additional children.
Completion of the reverse takeover is subject to approval by Frontier’s shareholders at a general meeting scheduled for July 25, which if approved, will see the firm move to AIM the following day.
Other Finance Yorkshire backed companies which have achieved AIM listings include Optibiotix Health, York, and Rotherham-based Xeros. Both received Seedcorn Fund investment from Finance Yorkshire.
