9th Apr 2020 08:52
(Alliance News) - Concepta PLC on Wednesday said it has raised GBP1.9 million through a placing, subscription and the issue of convertible loan notes.
Shares in Concepta were 33% higher at 1.40 pence on Thursday in London.
The pregnancy testing kit developer said it will place 112.2 million shares at 0.8p each, and announced the subscription of 112.7 million shares at the same price by funds managed by its largest shareholder Mercia Asset Management PLC and some of its directors.
Mercia subscribed for 74.9 million shares, taking its total stake to 30%. Non-Executive Chair Adam Reynolds subscribed for 8.1 million shares, taking his total stake in the company to 1.7%.
Chief Executive Penny McCormick and Chief Financial Officer Maddy Kennedy both subscribed for 1.3 million shares each, taking their stakes to 0.3% each. Non-Executive Director Lyn Rees subscribed for 1.6 million shares, resulting in a total stakeholding of 0.3%.
Concepta also announced the subscription for GBP101,000 of convertible loan notes by Mercia, with the notes maturing April 27, 2023 and carrying a 5% interest rate.
The Bedfordshire-based company said the funds raised will be used to develop its digital marketing effort, target commercial contracts for its myLotus self-testing pregnancy kit and for working capital to streamline its manufacturing capabilities.
Concepta also proposed a sub-division which would see each existing share of 2.5p sub-divided into one share of 0.1p and one deferred share of 2.4p.
"This fundraise provide us with a solid platform from which to drive the commercial success of our flagship self-test fertility test myLotus. I remain confident that we have a business with substantial upside opportunity and these funds will allow us to deliver upon its potential," said Chief Executive Penny McCormick.
By Ife Taiwo; [email protected]
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