25th Nov 2016 08:24
LONDON (Alliance News) - InnovaDerma PLC on Friday said it has raised GBP540,000 through a placing of 771,428 shares at 70.00 pence per share with new institutional investors.
Shares in InnovaDerma were up 4.5% at 78.40p on Friday morning.
InnovaDerma, which makes at-home treatments for hair loss, self-tanning and skin rejuvenation, said the placing was undertaking by Hybridan LLP, with the new shares representing 6.9% of the enlarged share capital.
InnovaDerma said the net proceeds of the fundraising will provide it with working capital to fund growth into European and US markets, and to improve supply chain management to meet growing demand for its Skinny Tan product.
The product contains a natural tanning active to tan and reduce the visible appearance of cellulite, according to InnovaDerma.
InnovaDerma last month said it secured a distribution deal for its Skinny Tan product in the US, which will see Skinny Tan initially rolled out to 655 of GNC Holdings's 6,000 US stores.
Meanwhile in the UK, the company said Skinny Tan continues to be in the top three tanning brands by revenue, and InnovaDerma last month said it will move a significant part of its production to the UK from Australia.
This is expected to improve the company's supply chain and production in the UK is expected to begin in December.
"We are pleased to have received this level of support from our new institutional shareholders in this placing; the funds raised put us in a strong position at a key stage of the company's development as we seek to grow our business in the UK and the US and meet growing demand for Skinny Tan," said Executive Chairman Haris Chaudhry.
By Hannah Boland; [email protected]; @Hannaheboland
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