TIDMPXS
RNS Number : 8472D
Provexis PLC
02 May 2017
2 May 2017
Provexis plc
Funding Update
Provexis plc ('Provexis' or the 'Company'), the business that
develops, licenses and sells the proprietary, scientifically-proven
Fruitflow(R) heart-health functional food ingredient, is pleased to
announce a funding update. The funding update follows guidance from
the Company in its interim results, released on 30 December 2016,
that the business would need to raise further equity finance in the
first four months of 2017.
The Company today announces that it is in late stage discussions
with a small group of investors in relation to two subscriptions to
raise further working capital for the Company.
First Subscription - completion expected in May 2017
The Directors currently have legally binding commitments in the
First Subscription to raise GBP170,000 at a subscription price of
0.50 pence per ordinary share, and non-legally binding indications
of interest in the First Subscription to raise approximately a
further GBP30,000 at 0.50 pence per ordinary share. No commissions
or expenses will be payable on the First Subscription.
A further announcement concerning the First Subscription will be
made by the Company on or before Wednesday 10 May 2017.
Second Subscription - completion expected in June 2017
The Company has applied to Her Majesty's Revenue and Customs
('HMRC') for advance assurance that it would be eligible to issue
new ordinary shares under HMRC's Enterprise Investment Scheme
('EIS'). The Company is listed on the Alternative Investment Market
('AIM') which is not considered by HMRC to be to be a 'recognised
exchange' under the EIS rules, which means that AIM listed
companies can raise money under EIS if they satisfy all the
necessary conditions.
The Company has received positive EIS advance assurance
clearance from HMRC on a number of previous occasions, most
recently in July 2012, and it has previously issued shares under
EIS. However, the EIS eligibility rules for companies and investors
have undergone a number of changes in recent years hence the need
to submit a new advance assurance application, as requested by a
number of prospective investors in the planned Second
Subscription.
The Directors currently have non-legally binding indications of
interest in the Second Subscription to raise approximately
GBP370,000 at a subscription price of 0.50 pence per ordinary share
with no commissions or expenses payable, of which approximately
GBP250,000 is likely to be subject to the Company receiving
positive EIS advance assurance clearance from HMRC.
The process of obtaining full EIS advance assurance clearance
from HMRC is likely to take some weeks, and the outcome from this
process is currently uncertain given recent changes to the EIS
eligibility rules for companies and investors. A further
announcement concerning EIS and the related Second Subscription
will be made by the Company in due course, likely in June 2017.
The Company highly values its private investor base and believes
that it would be appropriate to provide private investors with an
opportunity to participate in the Second Subscription at 0.50 pence
per ordinary share through the Company's existing access to the
PrimaryBid.com platform. Subscriptions through the PrimaryBid.com
platform, which are expected to be eligible for EIS if the Company
receives positive EIS advance assurance clearance from HMRC, will
be considered by the Company on a 'first come, first served' basis
subject to conditions, with any investment request over GBP40,000
first requiring the Company's consent. The Company will provide
further details of this process in due course.
The First and Second Subscriptions, to include the
PrimaryBid.com element of the Second Subscription, are not being
underwritten.
Whilst the final amount which the Company can expect to receive
from these Subscriptions cannot yet be determined, in part due to
the currently uncertain outcome of the EIS advance assurance
clearance process, total Subscriptions are currently expected to
exceed a minimum of GBP320,000. If the Company receives positive
EIS advance assurance clearance from HMRC total Subscriptions are
currently expected to exceed a minimum of GBP570,000.
Further announcements concerning the planned First and Second
Subscriptions above will be made by the Company at the appropriate
time.
The Company and DSM have seen an encouraging increase in brand
awareness and customer interest in Fruitflow(R) in recent months.
The total projected annual sales value of the prospective sales
pipeline for Fruitflow(R) has continued to increase and it now
stands at an all-time high level.
The Company's Fruitflow(R) + Omega-3 dietary supplement product
was launched at the end of June 2016 and it achieved sales of GBP7k
in the three month period to 30 September 2016. In recent months,
following some limited digital and other marketing investment, the
rate of sales for the product has more than doubled relative to the
initial launch period, with more than half of recent sales coming
from customers on monthly subscriptions. Further UK sales channel
opportunities for the product are currently being progressed, and
some international sales channel opportunities are being
explored.
The Company plans to issue a full trading update on or before
Wednesday 10 May 2017.
This announcement contains inside information.
ends-
For further information please contact:
Provexis plc Tel: 07490 391888
Dawson Buck, Chairman enquiries@provexis.com
Ian Ford, Finance Director
Cenkos Securities plc Tel: 020 7397 8900
Bobbie Hilliam
Notes for editors
About Provexis plc
AIM-listed Provexis is focused on the development and licensing
of its proprietary, scientifically-proven Fruitflow(R) heart-health
functional food ingredient.
In May 2009, the Company's Fruitflow(R) technology was the first
to be substantiated by the European Food Safety Authority ("EFSA")
under the new Article 13(5) for proprietary and emerging science.
In December 2009 the European Commission authorised the health
claim "Helps maintain normal platelet aggregation, which
contributes to healthy blood flow", which was the first wording to
be authorised under Article 13(5).
In June 2010 it was announced that the Company had entered into
a long-term Alliance Agreement with DSM Nutritional Products to
commercialise Fruitflow(R), and in June 2015 the Company confirmed
it had agreed significantly enhanced financial terms for its
Alliance Agreement with DSM for Fruitflow(R).
The Company's Alliance partner DSM Nutritional Products has
developed the market actively for the Company's novel, patented
Fruitflow(R) heart-health ingredient in all global markets, with
over 50 regional consumer healthcare brands now having been
launched by direct customers of DSM, and with a number of further
regional brands having been launched through DSM's distributor
channels.
An increasing number of further commercial projects have been
initiated by DSM with prospective customers, including some
prospective customers which are part of global businesses, with
good prospects for these projects to be launched as consumer
products. Interest in the technology exists in all major global
markets.
In June 2016 the Company launched a high quality dietary
supplement product containing Fruitflow(R) and Omega-3 which is
being sold initially from a separate, dedicated website
www.fruitflowplus.com on a mail order basis.
The Company conducted a Key Opinion Leaders' roundtable event
for Fruitflow(R) in London on 29 September 2016, focussed on
raising awareness of the importance of blood flow in cardiovascular
health, and the effectiveness of dietary antiplatelets. The
roundtable was attended by key scientists from Provexis and DSM,
along with a number of interested health care professionals with
close links to the media. The event was recorded and a video for
Fruitflow(R) + Omega-3 capsules targeting prospective consumers can
be seen here www.youtube.com/watch?v=P3HCSdyupEY&t=48s
The Company and DSM are keen to secure greater medical advocacy
for Fruitflow(R) and the roundtable event forms part of this
strategy.
The roundtable event is being supported by a broader consumer PR
campaign, and the Company's Fruitflow(R) + Omega-3 dietary
supplement product has featured in a number of recent articles in
the UK national press which can be seen here
www.fruitflowplus.com/fruitflow-in-the-media
The Company has been engaged in a two stage collaboration
agreement with the University of Oslo to undertake further research
into the relationship between Fruitflow(R) and blood pressure
regulation. In December 2016 the Company announced the results from
the second stage of the collaboration, a pilot study which
indicated that a standard dose of Fruitflow(R) in powder format
significantly lowered average 24-hour systolic blood pressure
compared to placebo. Both systolic and diastolic blood pressure
were shown to be significantly lower whilst trial subjects were
awake, a clinically relevant reduction in blood pressure which is
expected to be of interest to a large number of consumers and
patients with a wide range of cardiovascular conditions.
In April 2017 the Company announced that it had entered into a
memorandum of understanding with BY-HEALTH Co., Ltd ('BY-HEALTH')
which is intended to result in a research and collaboration
agreement with BY-HEALTH for Fruitflow(R). The Company also
confirmed separately that Provexis and DSM are working with
BY-HEALTH to support the planned launch of some Fruitflow(R) based
products in the Chinese market, with the first launch envisaged in
the second half of 2017.
BY-HEALTH is a substantial Chinese listed dietary supplement
business which is currently valued in excess of GBP1.7bn.
Provexis was founded in 1999 and is headquartered in Reading,
Berkshire.
Provexis shares are traded on the AIM market of the London Stock
Exchange under the ticker symbol PXS.
For further information, please visit www.provexis.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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