16th Aug 2024 09:48
(Alliance News) - Biome Technologies PLC on Friday proposed a GBP1.0 million fundraise after revenue in the first half fell short of expectations.
The Southampton, England-based bioplastics and radio frequency technology business said revenue fell 36% to GBP2.3 million in the first half that ended June 30 from GBP3.6 million the previous year.
The company's cash balance at period end stood at GBP600,000, down 33% from GBP900,000.
Biome Technologies shares were down 52% to 10.25 pence each in London on Friday morning.
Revenue from the Bioplastics division declined 33% to GBP2.0 million from GBP3.0 million. The company attributed this to production and regulatory difficulties which will be rectified in the second half to deliver "revenue of greater significance" for the division.
"The RF division entered the year having secured a major contract in 2023 for delivery in 2024 and secured three further large contract wins in 2024 H1 which are expected to result in significant revenue being recognised in 2024. The division's background spares, service and small equipment revenues have continued as expected in 2024 H1," Biome said.
Looking ahead, full-year revenue is expected to be "significantly below" expectations, albeit still ahead of GBP7.0 million reported in the previous year.
In addition, Biome announced plans for a proposed fundraise to raise approximately GBP1.0 million for working capital purposes.
A subscription of 19.0 million new shares split across two tranches will raise a total of GBP950,000 before expenses. The first tranche will consist of 200,000 shares followed by a second for 18.8 million shares.
Four senior figures, including Chief Executive Officer Paul Mines, have committed to collectively contribute GBP309,000 towards the subscription.
A retail offer via the REX platform operated by Peel Hunt Ltd will raise an additional GBP80,000 via the placing of 1.6 million shares at an issue price of 5p per share.
Biome will host a general meeting to obtain shareholder approval for the fundraise.
Existing convertible loan notes amounting to GBP1.3 million will also be converted into 25.6 million shares equal to the 5p issue price.
By Elijah Dale, Alliance News reporter
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