3 July 2015
Placing of shares via Primarybid.com
Provexis plc ("Provexis" or the "Company"), the business that develops and licenses the proprietary, scientifically-proven Fruitflow® heart-health functional food ingredient, announced on 4 June 2015 that it had joined PrimaryBid.com (www.primarybid.com), the online platform dedicated to equity crowdfunding for AIM-listed companies.
The Company is now pleased to announce that it has raised a gross £280,000 via the placing (the "Placing"), conditional on admission to trading on AIM, of 62,222,223 new ordinary shares of 0.1p each (the "New Provexis Shares") with investors using the Primarybid.com platform. The New Provexis Shares have been issued at a gross 0.45p 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 22.4 per cent to the closing mid-market price per Ordinary Share on 2 July 2015, being the latest practicable date prior to this announcement.
The Company will receive £267,400 net of costs, which will be used to provide the Company with additional working capital over the coming year, to include funding the second stage of the Company's blood pressure lowering collaboration work with the University of Oslo. The Company announced on 29 June 2015 that the first stage of the blood pressure collaboration had been completed with some very encouraging key results: there is strong evidence from the laboratory based work that a standard 150mg dose of Fruitflow® in powder format has the potential to give a clinically relevant reduction in systolic blood pressure.
Application will be made to the London Stock Exchange for the 62,222,223 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 9 July 2015 ("Admission").
Following Admission, the Company's enlarged issued share capital will comprise 1,647,068,167 ordinary shares with voting rights. The Company does not hold any shares in treasury. This figure of 1,647,068,167 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.
Dawson Buck, Chairman of Provexis, commented:
"The Board is pleased with the outcome of the Primarybid.com placing, which has resulted in relatively little dilution to shareholders.
The Company is keen to minimise further dilution to shareholders, and its cost base and resources continue to be very tightly managed. The Company remains focussed on moving into profitability as Fruitflow® revenues increase.
The Board is pleased that investors were able to engage with the Company directly using the Primarybid.com platform. The funds raised will be used to provide the Company with additional working capital over the coming year, to include funding the second stage of the Company's blood pressure lowering collaboration work, and they will further strengthen the Company's balance sheet."
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For further information please contact:
Provexis plc Tel: 07917 670260
Dawson Buck, Chairman [email protected]
Ian Ford, Finance Director
Cenkos Securities plc Tel: 020 7397 8900
Notes for editors
About Provexis plc
AIM-listed Provexis is focused on the development and licensing of its proprietary, scientifically-proven Fruitflow® heart-health functional food ingredient.
In May 2009, the company's Fruitflow® 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®, and in June 2015 the Company confirmed that it had agreed significantly enhanced financial terms for its Alliance Agreement with DSM for Fruitflow®.
The Company's Alliance partner DSM Nutritional Products has developed the market actively for the Company's novel, patented Fruitflow® heart-health ingredient in all global markets, with over 35 regional consumer healthcare brands now having been launched by DSM customers. DSM's total revenues for Fruitflow® for the year ended 31 March 2015 grew strongly by more than 73% year on year, reflecting strong interest in Fruitflow® and the success of the powder format which is being used in an increasing number of new product launches.
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.
The Company is engaged in a collaboration agreement with the University of Oslo ('the University') to undertake further research into the relationship between Fruitflow® and blood pressure regulation. Recent work undertaken by the University has shown that the Company's Fruitflow® technology has a potential new bioactivity leading to blood pressure lowering effects, and in November 2014 the Company signed a two stage collaboration agreement with the University to undertake further research into the relationship between Fruitflow® and blood pressure regulation.
On 29 June 2015 the Company announced that the first stage of the collaboration work with the University of Oslo had been completed, with some very encouraging key results: there is strong evidence from the laboratory based work that a standard 150mg dose of Fruitflow® in powder format has the potential to give a clinically relevant reduction in systolic blood pressure. The Company and the University will now proceed with the second stage of the collaboration work, which will see the parties conduct a small clinical trial by way of a proof of principle study.
On 4 June 2015 the Company announced that it had joined PrimaryBid.com (www.primarybid.com), the online platform dedicated to equity crowdfunding for AIM-listed companies.
PrimaryBid.com provides a new channel for the Company to raise equity from investors, allowing investors to bid directly for new shares in the Company at prices of their choosing, subject to certain limited restrictions. Full details can be found on www.primarybid.com.
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