30th Jan 2020 15:46
(Alliance News) - Benchmark Holdings PLC said Thursday it has raised GBP36.4 million in a share placing and would like to pick up another GBP6.6 million from an open offer to existing shareholders, with the funds used to scale-up development of its CleanTreat system for aquaculture.
Benchmark is offering the shares at 40 pence each. The AIM stock was trading down 4.0% on Thursday afternoon at 42.70p, giving the company a market capitalisation of GBP283.7 million.
CleanTreat, a water treatment system, was developed by Benchmark to support the launch of its key offering for the salmon farming industry.
"We are preparing to launch BMK08, our novel medicinal treatment to combat sea lice, one of the main biological challenges in salmon farming. This requires scaling up CleanTreat, our proprietary system that removes medicinal residues from treatment water, and which is integral to the delivery of BMK08. Having reviewed a number of funding options, we strongly believe that an equity raise is the optimal funding strategy to deliver this scale," Executive Chair Peter George said.
Benchmark said the fundraise is conditional on shareholder approval at a meeting to be held on February 17.
"The actions we will take in 2020 will deliver a profitable business, leading the future direction in key areas of sustainable aquaculture," George added.
By Tom Waite; [email protected]
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