TIDMPXS
RNS Number : 9171F
Provexis PLC
02 August 2016
2 August 2016
Provexis plc
Results of placing
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 it has raised a gross GBP224,000 via a placing (the
"Placing"), conditional on admission to trading on AIM, of
93,333,340 new ordinary shares of 0.1p each (the "New Provexis
Shares") with new and existing investors.
The New Provexis Shares have been issued at a gross 0.24p per
share and rank pari passu in all respects with the existing
ordinary shares of 0.1p each in Provexis.
The Placing represents a gross discount of 14.3 per cent to the
closing mid-market price per Ordinary Share on 1 August 2016, being
the latest practicable date prior to this announcement.
The Company's RNS announcement of 29 June 2016 confirmed that
the Company then had non-legally binding indications of interest in
a placing to raise a total of approximately GBP185,000 at a
subscription price of 0.24 pence per ordinary share. The GBP185,000
interest announced on 29 June comprised indications of a GBP25,000
interest from the Company's Chairman Dawson Buck, with indications
of a GBP160,000 interest from other investors.
Under the Company's code on dealings in securities the Company
is now in a close period for directors' dealings which means that
Dawson Buck will not be able to take up his subscription until the
Company's audited annual report and accounts are published,
expected in early September. Dawson Buck has therefore given a
stated intention to subscribe to 10,416,667 shares at a
subscription price of 0.24p totalling GBP25,000, with his formal
commitment to and payment for the subscription to take effect in
September immediately after publication of the Company's annual
report and accounts.
The GBP224,000 Placing announced today with new and existing
investors excludes Dawson Buck's stated intention to subscribe to
10,416,667 shares totalling GBP25,000 in September 2016, and it
therefore represents a GBP64,000 increase over the GBP160,000
interest from other investors announced on 29 June. The total funds
which are expected to be raised from the Placing announced today
and from Dawson Buck's GBP25,000 intended share subscription in
September 2016 amount to GBP249,000.
The Company will receive the full GBP224,000 proceeds raised
from the Placing announced today, which will be used to provide the
Company with additional working capital over the coming year, to
include the working capital required to hold stock of the Company's
Fruitflow(R) + Omega-3 dietary supplement product which was
launched online at www.fruitflowplus.com on 29 June 2016.
Application will be made to the London Stock Exchange for the
93,333,340 New Provexis Shares to be admitted to trading on AIM. It
is expected that the admission will become effective and that
trading in the New Provexis Shares will commence on 8 August 2016
("Admission").
Following Admission, the Company's enlarged issued share capital
will comprise 1,740,401,507 ordinary shares with voting rights. The
Company does not hold any shares in treasury. This figure of
1,740,401,507 ordinary shares 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 and Transparency Rules.
Ian Ford, Finance Director of Provexis, commented:
"The Board is pleased with the outcome of the placing announced
today, which has resulted in relatively little dilution to
shareholders. The funds raised will be used to provide the Company
with additional working capital over the coming year, and they will
further strengthen the Company's balance sheet.
The Company is seeking to maximise the commercial returns that
can be achieved from its Fruitflow(R) technology, and the Company's
cost base and its resources continue to be very tightly managed.
The Company remains keen to minimise dilution to shareholders and
it is focussed on moving into profitability as Fruitflow(R)
revenues increase. The Company will provide a further update on its
capital structure and funding in its preliminary full year results
statement, expected in early September."
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.
On 29 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 is engaged in a two stage collaboration agreement
with the University of Oslo ('the University') to undertake further
research into the relationship between Fruitflow(R) and blood
pressure regulation. The Company is very pleased with the
encouraging results from the first stage of the collaboration with
strong evidence that a standard dose of Fruitflow(R) has the
potential to give a clinically relevant reduction in systolic blood
pressure. The Company and the University are now in the process of
completing a small clinical trial by way of a proof of principle
study.
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
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(END) Dow Jones Newswires
August 02, 2016 02:01 ET (06:01 GMT)