Biotech firm share placing to raise at least £36.4m

Sheffield-based Benchmark Holdings has conditionally raised £36.4m by way of a placing at an issue price of 40p per ordinary share.

And the listed aquaculture health, nutrition and genetics business, intends to raise up to a further £6.6m by way of an open offer to qualifying shareholders at an issue price of 40p per ordinary share.

Outlining the reason for the fundraise, Benchmark says it has developed CleanTreat®, a proprietary system that removes medicinal residues from treatment water, and which is integral to the commercial delivery of product candidate BMK08, the company’s novel treatment to combat sea lice.

The directors say they “strongly believe” the fundraise represents the best scale-up strategy for CleanTreat® ahead of the anticipated BMK08 regulatory approval.

They note this will increase its speed to market, deliver a higher expected return-on-investment and maximise value for Benchmark shareholders by retaining full ownership of CleanTreat®.

Numis is acting as Financial Adviser, Nominated Adviser and sole Broker in relation to the fundraise.

Peter George, executive chairman of Benchmark, said: “We are preparing to launch BMK08, our novel medicinal treatment to combat sea lice, one of the main biological challenges in salmon farming.

“This requires scaling up CleanTreat®, our proprietary system that removes medicinal residues from treatment water, and which is integral to the delivery of BMK08.

“Having reviewed a number of funding options, we strongly believe an equity raise is the optimal funding strategy to deliver this scale.

“I am pleased that existing and new shareholders have placed their confidence in us to drive Benchmark to finally deliver on its enormous potential. The actions we will take in 2020 will deliver a profitable business, leading the future direction in key areas of sustainable aquaculture.”