Provexis plans £5m fundraising

BIOTECH business Provexis is in talks with institutional investors over a £5m fundraising.

In a statement the company, which is developing medical food and dietary supplement technologies, said it was planning to offer discounted shares to institutional investors and high net worth individuals.

If the deal goes ahead the group will widen the offer to all shareholders. Shares rose sharply in early trading but dropped from 13.5p to 8.75p following the announcement.

“There is no guarantee that the subscription will proceed,” said the company. A further announcement is expected.

Last week Provexis said director Jonathan Diggines, chief executive of early stage private equity investor Enterprise Ventures, would leave the board immediately.

Mr Diggines took a non-executive position with Provexis in April 2007, five years after Enterprise invested in the company through its Rising Stars seed fund. In 2005 the business listed on the Alternative Investment Market following a reverse takeover by Nutrinnovator.

Provexis has its headquarters in Windsor but operates its research and development base in Liverpool.