Avacta Group in share placing to accelerate product development
HEALTHCARE company Avacta Group today said it has raised £4.7m through a share placing to allow it to speed up development of new products.
The AIM-listed Wetherby-based business is a provider of innovative diagnostic tools, consumables and reagents aimed at reducing the cost of human and animal healthcare.
It said the placing of around 855m new shares at 0.55p each represent 21.3% of the company’s enlarged share capital.
The placing was with new and existing institutional shareholders and will raise net proceeds of £4.5m after costs and will be used to accelerate the group’s development and commercialisation of a range of products and instruments.
Avacta was advised on the placing by law firm Walker Morris led by corporate partner Richard Naish with support from Rebecca Whitehouse and Josh Kitson.
Alastair Smith, chief executive of Avacta, commented: “We are delighted to have successfully raised these funds through both existing and new shareholders. The board looks forward to utilising the proceeds of the placing to build the life sciences division of our business, specifically developing the Affimer platform.
“Although currently at an early stage, the board sees this as being a key division contributing to revenue growth in our business in future and it is vital that the commercialisation plan is executed effectively. We will also shortly be undertaking commercial roll out of the Sensipod diagnostics system following recent successful field trials.
“It is pleasing that the placing price is at a small premium to the middle market share price of 0.535 pence per ordinary share on 17 July 2013, and that there was greater demand than the final placing amount.”
