Avacta in share placing to accelerate development
HEALTHCARE business Avacta has raised £10.1m to accelerate the development and commercialisation of one of its medical innovations.
The Wetherby-based company, which provides innovative diagnostic tools, consumables and reagents aimed at reducing the cost of human and animal healthcare, will use the money for its Affimer (novel non-antibody affinity reagents) platform.
The cash has been generated through a conditional placing of new ordinary shares of 1.1p each, through both existing and new shareholders.
Alastair Smith, chief executive of Avacta, said: “We are delighted to have successfully raised these funds through both existing and new shareholders. The board has identified the vast potential of the Affimer platform to complement and replace antibodies in many applications. Following the achievement of some significant technical milestones, which were announced on March 20 2014, the board considered that the commercialisation of the Affimer platform should be accelerated and the board is now in a position to do that.”
Richard Naish, Jamie Burgess and Thomas Mieszkowski from Walker Morris acted for Avacta.
In the business’s interim results for the period ended January 31 2014, revenues increased by 40% to £1.61m. Underlying operating loss reduced to £0.65m from £0.96m and pre-tax loss reduced to £0.77m from £0.96m.
Speaking last month when the interim results were announced, Smith said it was “an exciting time” for the group, which he said is poised for growth not only through its existing businesses in Avacta Animal Health and Avacta Analytical, which are both growing and now contributing positively, but also through the “enormous potential” for the commercial exploitation of the Affimer platform.
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