By Ian Walker
Oncimmune Holdings PLC announced on Wednesday that it plans to raise at least £2.1 million ($2.5 million) via a share placement and subscription, which will be used to repay part of the company’s debt and provide short-term working capital are to be used.
The immunodiagnostics developer also said it is exploring options for its EarlyCDT lung products business, including a separate listing on the London Stock Exchange, as the board expects higher sales.
The business is expected to generate significantly increased sales and profitability in the short to medium term, the company said.
Oncimmune plans to issue around 4.7 million new shares of common stock at 45p each, representing a 5.1% premium to Tuesday’s closing price of 42.80p. The fundraising will be supported by certain directors and other investors who have agreed to subscribe for the shares.
The Company also announced that the value of contracts for the ImmunoInsights services business was €13.8 million ($14.4 million) at the end of November, compared to €10.0 million at the end of August.
Oncimmune added that the board expects group sales of £4.2m for the 15 months ended 31st August compared with £3.9m for the 12 months ended 31st May reported on 21st September.
This will result in losses for the 15 months reflecting the additional revenue for the additional three months and continued operating expenses at similar levels as for the 12 months, it said.
The company reported a pre-tax loss of £9.6 million for the year ended 31 May. It changed its year-end from May to August.
Nonetheless, given the company’s order pipeline, the board expects full-year 2023 revenue to exceed £7.5m and the group to break even before interest, tax, depreciation and amortization.
Shares at 1423 GMT were up 0.2p, or 0.5%, to 43.0p.
Write to Ian Walker at [email protected]
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