6th Nov 2019 14:38
(Alliance News) - Frontier IP Group PLC said Wednesday it has raised GBP3.8 million through an oversubscribed placing, which will go towards supporting the ongoing needs of the business and making progress on its investment pipeline.
The intellectual property company raised GBP3.8 million through the issue of 8.0 million shares at a price of 50 pence per share, a 9.9% discount from its closing price on Tuesday of 55.5p.
Frontier IP was looking to raise a minimum of GBP3.5 million, with the chance to upscale the fundraising up to GBP4.0 million.
Shares in Frontier IP - which is headquartered in Edinburgh - were down 9.2% at 50.39 pence on Wednesday in London.
The placing was conducted via a bookbuilding process by sole broker and bookrunner N+1 Singer Advisory LLP.
Proceeds from the placing will go towards supporting the business's ongoing needs, providing resources to take advantage of future investment opportunities, and continued development of its current portfolio.
The completion of the placing is now conditional on gaining shareholder approval for the new shares to be issued at the annual general meeting on December 4.
"The success of this oversubscribed placing is a reflection of the continued progress of Frontier IP and our portfolio companies over the past year - as demonstrated by our excellent full-year results," said Chief Executive Officer Neil Crabb.
"The strength of our business model and the greater traction we are gaining with industry and academic partners is reflected in the support we have received from existing and new investors. We are now in a strong financial position and well placed to withstand any future market volatility," Crabb added.
Following the admission of shares, Frontier IP will have 50.4 million shares issued overall.
By Dayo Laniyan; [email protected]
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