23rd Jul 2019 18:36
(Alliance News) - Renalytix AI PLC on Tuesday said it has raised GBP14.0 million through a "significantly" oversubscribed share placing, with strong demand received from existing and new shareholders.
The clinical diagnostics company said it has placed 5.6 million shares at a price of 250 pence each. The placing price represents a discount of 9.1% to the closing mid-price of 275p on Monday.
Renalytix shares closed 5.5% lower on Tuesday in London at 260.00p each, giving it a market capitalisation of GBP139.9 million.
Stifel and N+1 Singer acted as joint bookrunners in relation to the placing, the AIM-listed company said.
As part of the placing, Renalytix said the Icahn School of Medicine at Mount Sinai has committed to subscribe for 834,440 shares at the placing price, so as to maintain its shareholding at 15%.
Renalytix said it will use net proceeds of the placing towards the regulatory and clinical development of KidneyIntelX, the company's lead AI-enabled kidney diagnostic product.
In addition, Renalytix plans to develop its second product portfolio, FractalDx, to address key issues in kidney transplant and rejection.
The remaining proceeds will be used towards working capital purposes to support the company's growth, it said.
"We are pleased to have achieved an oversubscribed placing supported by a broad range of investors, and thank them for their support," said Renalytix Chief Executive James McCullough.
"The company will now be better resourced to support the acceleration of its commercial plans, having made rapid progress against its objectives," added McCullough.
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