Syntopix confirms £2m fundraising

SKIN treatment specialist Syntopix has confirmed its plans to raise up to £2m which it will use to further fund research and business opportunities.

The equity issue to investors will also be invested in further developing the Bradford-based university spin-out’s intellectual property portfolio.

Syntopix is placing almost 3m ordinary shares of 10p each at an issue price of 67p per share. The placing price represents a discount of 9.46% to the closing mid market price of its shares on Friday.

The AIM-listed company will use the cash to undertake further studies on its leading compounds which it has developed for use on human skin conditions, such as acne, oral hygiene and hair care.

Its library of compounds now stands at 2,200 compounds and continues to grow.

Members of Syntopix’s board, as well as investors, will be subscribing to the fundraising.

A general meeting will be held on March 31 to get shareholder approval for the scheme.

Syntopix has completed the second phase of human tests of its leading dermatological compound for tackling acne. The company said the compound had helped reduce spots on its test field by 30%.

Syntopix is also to test a further acne compound, which it believes has “huge consumer appeal”, on humans this year as well as a compound to tackle the main bacterium responisble for gum disease.

Corporate lawyers from Leeds-based Walker Morris have acted for Syntopix on its proposed share placing.

Ian Gilbert (partner) and Rebecca McCall (associate), both from the corporate department are advising Syntopix on the deal.

The company is not opening the placing to all shareholders and said it needs to issue the equity because of a lack of working capital.

Last week Syntopix reported improved half year results and said it expected to secure licensing deals for products over the next 12 months.

The group improved its loss making position over the six months to January 31.

Losses declined from £577,000 in the same period last year to £453,000 this time. Revenues were up from £85,000 to £104,000 while its operating loss was £517,000.