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AorTech eyes £2.6m placing and open offer at heavy discount
Biomaterials company AorTech International raised £2.1m on Monday by way of a heavily discounted placing and subscription and proposed a further £0.5m.
AorTech, which issued 5.74m new ordinary shares as part of the placing and a further 1.26m for the subscription element both prices at 30p, intends to use the net proceeds over the coming two years to fund the development of its textile substrate and stage-one heart valve products, as well as for investment in capital equipment for heart valve manufacturing and general working capital purposes.
The company also proposed to raise a further £500,000 by way of a conditional open offer to qualifying shareholders at an issue price of 30p each, representing a discount of approximately 32% to AorTech's closing price of 44p on 18 May.
Admission of the new shares to AIM was set to occur on 11 June.
Bill Brown, chairman of AorTech, said, "I am pleased to announce a successful fundraising and wish to thank the investors, new and existing, for their support. We now look forward to working with our new colleagues and partners to execute our exciting business plan."
As of 0850 BST, AorTech shares had tumbled 20.45% to 35p, with the 30p fundraisings a 32% discount to the closing price of 44p at the end of last week.