29th Jun 2016 09:00
LONDON (Alliance News) - Rex Bionics PLC on Wednesday said it will raise funds through a subscription agreement and will strategically re-position itself as it signed a new deal with a Dubai-based healthcare company.
Rex is behind the Rex Robot technology, which is designed to restore the mobility of wheelchair users.
It said it will issue 7.7 million shares to existing shareholders at 30.00 pence per share to raise GBP2.3 million. Warrants also will be issued on the basis of one share per subscription share, giving the potential for Rex to raise another GBP2.3 million if the warrants are exercised in full by the end of June 2017.
Shares in Rex were untraded on Wednesday, having last traded at 35.00 pence.
Rex said it recently completed a strategic review which concluded that while it had taken longer than expected to get the first commercial revenue for its Rex Robot product, data indicates the product is "safe and effective". In addition, there are a number of wheelchair users for whom Rex Robot is the only viable option for the achievement of an improvement in health and fitness to get them back to work.
As a result, Rex said it will now focus on more explicitly promoting the Rex Robot's potential for patients with the most severe neurological injuries, typically covering people with quadriplegia and people who have experienced a stroke that has proved resistant to rehabilitation.
The funds from the subscription will be used to back this strategic push, but Rex also will consider other opportunities for growth, including partnership and alternative sources of funding.
As part of the push, Rex has signed an agreement with Dubai-based neuro-rehabilitation clinic Amana Healthcare to provide robot-assisted physiotherapy with the Rex Robot in the United Arab Emirates. No financial details on this agreement were provided.
By Sam Unsted; [email protected]; @SamUAtAlliance
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