Placing raises more than £5m for medical tests manufacturer
Abingdon Health, says it has conditionally raised gross proceeds of around £5.2m through a placing of 53,589,741 new ordinary shares to certain institutional and other investors at a price of 9.75 pence per share.
The York-based business, which produces medical diagnostics tests, is also proposing to raise up to an additional £500,000 by way of a retail offer.
Up to £3m of the proceeds of the placing will fund additional product development, with up to £1m being invested over two years to expand the group’s Analytical Laboratory Service. The balance of the fundraise proceeds will be used to provide working capital.
Chris Yates, CEO, said: “We are pleased by the interest and support shown in supporting Abingdon’s Placing and I would like to thank shareholders for participating.
“We are also excited to offer our retail shareholders the opportunity to be part of the fundraise through the retail offer, which will be announced in due course.
“Following the Placing, Abingdon can move forward with our plans to invest in both our CDMO (Contract Development and Manufacturing Organisation) service offering through the investment in our analytical laboratory service and accelerate our product development plans.”
The business has also struck a conditional agreement to acquire the Compliance Solutions Group, a consultancy business which specialises in meeting regulatory requirements in international In vitro diagnostics and medical device markets.
This acquisition would be for a maximum consideration of up to £3.2m in cash and shares, with the cash element funded by Abingdon’s existing cash resources.
Compliance Solutions Group is based in Nottinghamshire and employs 37 people.
An Abingdon spokesman said its activities are complementary to those of Abingdon and would increase the depth of its regulatory expertise.
He added that acquiring this business would give Abingdon an opportunity to cross-sell its services – such as lateral flow development and manufacture and analytical laboratory support – into the Compliance Solutions Group’s customer base.
