Listed medical tests manufacturer looks to raise at least £4m

York-based Abingdon Health, an international developer and manufacturer of rapid medical tests, has today announce a proposed placing, subscription, open offer and primaryBid offer to raise no less than £4m.

£2.7m of the gross proceeds of the placing and the £0.3m gross proceeds from the subscription (before expenses) will initially be used to cover a working capital shortfall expected to arise in the first quarter of 2022.

The company will also invest up to a further £3m gross proceeds of the placing in product research and development initiatives to capitalise on growth opportunities in the area of infectious disease. These areas include Flu testing, Hepatitis C and Lyme disease.

The placing will be conducted at a price of 25 pence per share (the issue price).

Abingdon Health, which also has a base in Doncaster, says the placing will comprise the issue of no less than 14,800,000 new ordinary shares (the placing shares), representing no less than 15.5% of the existing issued ordinary share capital of the company.

The placing includes the participation of some of the company’s directors, who intend to subscribe for 1,999,599 placing shares, raising about £0.5m of the £3.7m minimum gross proceeds of the placing, before expenses.

The business says it reserves the right to increase the size of the placing up to no more than 22,800,000 placing Shares, to raise gross proceeds of no more than £5.7m.