The placing will help FUM continue developing key products and commercialise others
Companies: Futura Medical plc
Futura Medical plc (LSE: FUM) confirmed yesterday that it has conditionally raised £12m from new and existing investors to fund continued development of its sexual healthcare and pain relief product portfolios.
Proceeds from the placing, approx £11.5m, will give the Company funding to continue the development of the Company's pain relief portfolio and to expedite the process of bringing MED2002, TPR100, and TIB200 to commercialisation.
Futura Medical plc (LSE: FUM) confirmed yesterday that it has conditionally raised £12m from new and existing investors to fund continued development of its sexual healthcare and pain relief product portfolios.
The AIM-listed transdermal healthcare technology company said that it would be issuing 21,052,632 new ordinary shares at a price of 57p per placing share, with the placing price representing a 13p discount to Wednesday's (26 October) closing pricing.
FUM's placement will be admitted to AIM on the 16th and 17th of November.
A key reason for the placing is to allow FUM to continue to fund additional product and commercial development activities and to seek additional license agreements on more favourable terms than would otherwise be available.
“Such agreements, coupled with the pursuit of sustainable income streams from existing and new licensed applications of the Group's advanced proprietary transdermal technology, are expected to facilitate the creation of material shareholder value over the longer term."
James Barder, Chief Executive of Futura, thanked investors for the support of the placing, saying the move would create greater shareholder value:
"...it will facilitate the negotiation of additional product licence deals over time (on the pain relief products and MED2002) having undertaken additional developmental and regulatory work and provides the opportunity to do so from a position of greater financial strength. We would like to thank both existing shareholders and new investors for their support of the placing."
Broker N+1 Singer said the move will support the continued development and commercialisation of several products, reiterating its highly positive stance on Futura.