MedTech firm raises £2.2m
Listed medical technology company, Surgical Innovations Group, has confirmed it raised gross proceeds of £2.2m to reinflate working capital, invest in new product development and sustainability support initiatives.
This was through a share placing and a subscription of 137,500,000 new ordinary shares at an issue price of 1.6 pence per share, which equates to a 11.1 per cent discount on the closing mid-market price of 1.8 pence per share/
It comprised of 112,500,000 placing shares 25,000,000 subscriptions with certain existing and new investors.
The fundraise which was initially announced this morning sought to raise a minimum of £1.8m in order to “allow the company to benefit from the organic growth opportunities available to it, and strengthen the balance sheet”.
Nigel Rogers, chairman of Surgical Innovations commented on the fundraise, saying: “We are very pleased with the strong support shown for Surgical Innovations, not only from all of our largest six shareholders, but also from a new cornerstone investor. This demonstrates the confidence in the strategic direction of the business and its management, and will enable the Company to accelerate exciting growth opportunities, for the benefit of all of our stakeholders, from a secure financial base.”
Application will be made to the London Stock Exchange for the 137,500,000 shares to be admitted to trading on AIM. It is expected that admission will take place at 8.00 a.m. on or around 22 September and no later than 6 October.
As part of the fundraising five of the firm’s directors including Rogers, chief executive David Marsh, group development director Adam Power, non-executive director Paul Hardy and non-executive clinical director Professor Mike McMahon subscribing for a total 1,562,500 shares (312,500 each).
Nplus1 Singer Capital Markets is acting as sole broker in connection with the fundraise.
Like many businesses Surgical Innovations has been impacted by the Covid-19 situation and in its latest half year report to the 30 June 2020 it reported a 49 per cent drop in revenue to £2.59m (2019: £5.10m).
It also posted an operating loss of £0.87m companied to a operating profit of £0.22m in 2019.