TIDMCPT
RNS Number : 2485W
Concepta PLC
13 November 2017
13 November 2017
Concepta plc
("Concepta" or the "Company")
Oversubscribed equity fundraising of GBP2,000,000
Exceptionally strong support from existing and new
shareholders
Concepta plc (AIM: CPT), the pioneering UK healthcare company
and developer of a proprietary platform and suite of products
targeted at the personalised mobile health market with a primary
focus on women's fertility and specifically unexplained
infertility, is pleased to announce that it has conditionally
raised GBP2,000,000, before expenses, through an oversubscribed
placing ("Placing") of 23,359,999 new Ordinary Shares of 2.5p par
value (the "Placing Shares") and subscription ("Subscription") of
5,211,429 new Ordinary Shares of 2.5p per value ("the Subscription
Shares") at a price ("Issue Price") of GBP0.07 per new Ordinary
Share .
The Placing Shares were placed by the Company's Placing Agent,
Novum Securities Limited. The Placing Shares and Subscription
Shares represent 20.6% of the enlarged issued share capital.
Use of proceeds
The primary use of the net proceeds will be to expedite the
geographical expansion of its myLotus fertility product in China
where the Company currently has three distribution agreements in
place targeting an estimated market of 2.3 million women per year
across Hebei, Shanghai, Beijing and Liaoning. The Company plans to
further expand this and has identified a total of 25,000 target
hospitals with approximately 20 distributors.
Additionally, the funds will be used to advance the Company's
launch of myLotus in the European marketplace where it has
commenced its application for CE Marking with approval expected by
H1 2018. Funds will be deployed to market myLotus to be sold
through online channels direct to consumers, initially in the UK
and Germany.
New product development
The Company also plans to apportion some of the funds to
research and development as it has identified a number of potential
further applications of its myLotus product which could result in
exponential growth in the use of the device across the mobile
health sector. These include tests to differentiate chronic stress
from acute stress, detection of inflammation issues, and patient
management - monitoring the effectiveness of various treatments and
interventions as well as potential to provide real time data for
clinical trials.
The remaining funds will be used for general working capital
purposes, put towards the manufacture of myLotus meters and test
strips for commercial launch across China and Europe.
The Placing
The Placing is conditional, amongst other things, upon:
(i) compliance by the Company in all material respects with its
obligations under the Placing Agreement; and
(ii) admission of the New Ordinary Shares to trading on AIM
becoming effective by not later than 8.00 a.m. on 16 November 2017
(or such later date as is agreed between the Company and Novum
Securities Limited, being not later than 8.00am on 30 November
2017).
The Placing Shares will, following Admission, rank in full for
all dividends and distributions declared, made or paid in respect
of the issued ordinary share capital of the Company after the date
of their issue and will otherwise rank pari passu in all other
respects with the existing Ordinary Shares. The Issue Price
represents a discount of approximately 15 per cent. to the closing
mid-market price of Ordinary Shares (of GBP0.0825) on 10 November
2017.
Pursuant to the Placing Agreement, Novum Securities Limited, as
agent for the Company, has agreed to use its reasonable endeavours
to procure subscribers for the Placing Shares at the Issue
Price.
Related Party Transactions
Mercia Technologies plc ("Mercia"), a Substantial Shareholder in
the Company has agreed that they will participate in the
Subscription, by subscribing GBP364,800 for 5,211,429 Subscription
Shares as set out below. Mercia is participating on the same terms
as all other placees in the Placing.
Name Amount Number No of Ordinary % of Ordinary
subscribed of Subscription Shares Share
Shares held post Capital
Admission held post
Admission
--------------- ------------- ----------------- --------------- --------------
Mercia
Technologies
plc GBP364,800 5,211,429 25,211,428 18.24%
--------------- ------------- ----------------- --------------- --------------
The participation in the Subscription by Mercia constitutes a
related party transaction under the AIM Rules for Companies.
Dr Mark Wyatt, who is an investment director at Enterprise
Ventures, which is owned by Mercia, is not considered independent
in relation to the consideration of this related party transaction
under AIM Rule 13. Therefore Adam Reynolds, Neil Mesher, Barbara
Spurrier and Erik Henau, who are considered to be independent
directors of the Company for this purpose, have considered the
participation of Mercia in the Subscription. Having consulted with
the Company's nominated adviser, the independent directors consider
that the terms of Mercia's participation in the Subscription is
fair and reasonable insofar as Shareholders are concerned.
Warrants
In addition, Novum have been issued with warrants over 1,381,967
new Ordinary Shares. The warrants have an exercise price of GBP0.07
per share, and are exercisable in a period ending three years after
Admission.
Application for Admission
Application has been made for the Placing Shares and the
Subscription Shares to be admitted to trading on AIM ("Admission").
It is anticipated that Admission will become effective at 8.00 am
on 16 November 2017.
Total voting rights
Following Admission, the Company's enlarged issued share capital
will comprise 138,196,675 Ordinary Shares. The Company does not
hold any shares in treasury. Therefore, the total number of
Ordinary Shares with voting rights will be 138,196,675. This figure
may be used by shareholders in the Company as the denominator for
the calculations by which they will determine if they are required
to notify their interest in, or a change in their interest in, the
share capital of the Company under the FCA's Disclosure Guidance
and Transparency Rules.
Erik Henau, CEO of Concepta plc said: "I am delighted with the
support we have received from investors who recognise the potential
for our myLotus product. These funds will enable us to progress to
the next stage as we look to build Concepta into a leading, global
healthcare company. We remain committed to creating shareholder
value through signing licencing deals and forming partnerships in
order to expand Concepta into a highly profitable company.
"We believe this is a transformational period for the Company
and now look to the future with confidence. I'd like to thank
existing shareholders for their continued support and welcome the
new shareholders that have participated in the Placing. I look
forward to providing them with regular updates as we progress
towards widespread distribution of myLotus in hospitals across
China in the coming months, and its subsequent commercial launch in
the UK and Germany in H1 2018."
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement.
Enquiries:
The Company
Erik Henau
CEO
Tel +44 (0) 1234 866601
SPARK Advisory Partners Limited (Nomad)
Neil Baldwin / Mark Brady
Tel: +44 (0)20 368 3550
Beaufort Securities Limited (Broker)
Jon Belliss
Tel: +44 (0)20 7382 8300
Novum Securities (Placing Agent)
Colin Rowbury
+44 (0) 20 7399 9400
Yellow Jersey (Financial PR)
Georgia Colkin / Joe Burgess / Katie Bairsto
Tel: +44 (0) 776 932 5254
About Concepta Plc:
Concepta plc is a pioneering UK healthcare company that has
developed a proprietary platform and products targeted at the
personalised mobile health market with a primary focus on women's
fertility and specifically unexplained infertility*.
Founded in 2013, Concepta has developed a revolutionary flagship
product 'MyLotus' for home self-testing that helps women with
unexplained infertility to conceive.
MyLotus is the only consumer product which allows both
quantitative and qualitative measurements of measurement of a
woman's personal hCG and LH hormone levels in an easy to use home
test to facilitate higher conception rates and early diagnosis of
any fertility problems. Competitor products currently only allow
qualitative measurement and are based on the 'average woman'.
Concepta has a defined route to market for its new 'My Lotus'
product with Regulatory approvals for launch in China in place for
2016 and CE-Marking for UK and Europe to follow in 2018 where the
revenue potential of the Chinese and EU infertility market is worth
c.GBP600m per annum for the company.
*Unexplained infertility refers to women that have been unable
to conceive after 6 months of trying. This highly motivated target
group of consumers won't typically be offered medical intervention
until 12 months of unsuccessfully trying, with IVF not offered
until two years. Research indicates couples start to take positive
action ahead of this time and there is little medical support to
help them do so.
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCEAFFAFSLXFAF
(END) Dow Jones Newswires
November 13, 2017 02:01 ET (07:01 GMT)
Myhealthchecked (LSE:MHC)
Historical Stock Chart
From Apr 2024 to May 2024
Myhealthchecked (LSE:MHC)
Historical Stock Chart
From May 2023 to May 2024