Provexis PLC Draw Down of Funds and Issue of Equity (2699F)
23 April 2014 - 4:00PM
UK Regulatory
TIDMPXS
RNS Number : 2699F
Provexis PLC
23 April 2014
23 April 2014
Provexis plc
Draw Down of Funds and Issue of Equity
Provexis plc ("Provexis" or the "Company"), the business that
develops and licenses the proprietary, scientifically-proven
Fruitflow(R) heart-health functional food ingredient, has raised
net proceeds of GBP45,403 by drawing down on its Equity Financing
Facility ("EFF") with Darwin Strategic Limited ("Darwin").
Under the terms of the EFF agreement the Company has allotted,
conditional on admission to trading on AIM, 7,000,000 new ordinary
shares of 0.1p each to Darwin (the "New Provexis Shares"). The New
Provexis Shares have been issued at a gross 0.7p per share and rank
pari passu in all respects with the existing ordinary shares of
0.1p each in Provexis.
The draw down is the first undertaken by the Company since the
renewal of the EFF in September 2013 and it represents a discount
of 7.3 per cent to the closing mid-market price per Ordinary Share
on 22 April 2014, being the latest practicable date prior to this
announcement. The net proceeds raised by the draw down were linked
to the floor price set by the Directors during the draw down.
Application will be made to the London Stock Exchange for the
7,000,000 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 29 April 2014
("Admission").
Following Admission, the Company's enlarged issued share capital
will comprise 1,561,815,614 ordinary shares with voting rights. The
Company does not hold any shares in treasury. This figure of
1,561,815,614 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 plc, commented:
"We decided in March this year to raise a small amount of
additional capital to strengthen the Company's balance sheet, and
help fund the Company's patent and trade mark costs for
Fruitflow.
The Company is responsible for filing and maintaining patents
and trade marks for Fruitflow as part of the Company's Alliance
Agreement with DSM. The Company is pleased to confirm that trade
marks for Fruitflow have been registered in the EU, US, China and
Japan, and trade marks have been applied for or registered in a
further ten international territories, to support existing and
forthcoming consumer brands across all major global markets.
The Company confirmed in its pre close update on 31 March 2014
that its Alliance partner for Fruitflow, DSM Nutritional Products,
is continuing to make good progress marketing Fruitflow, with over
24 regional consumer brands worldwide containing our novel,
patented technology having been launched, and an increasing number
of further commercial projects having been initiated with
prospective customers.
DSM's manufacturing and technical teams continue with positive
developments in reducing Fruitflow production costs, which will
help in the promotion of the powder based compound of Fruitflow
which is suitable for a wide variety of tablet, gel capsule and
dietary supplement products. Further, as manufacturing volume
increases unit costs will decrease, enabling more positive margins
and thus profit distributions to the Company.
The Board is pleased with the outcome of the draw down which has
resulted in little dilution to shareholders, and it remains
positive about the outlook for the business."
ends-
For further information please contact:
Provexis plc Tel: 07917 670260
Dawson Buck, Chairman enquiries@provexis.com
Ian Ford, Finance Director
Cenkos Securities plc Tel: 020 7397 8900
Bobbie Hilliam
This information is provided by RNS
The company news service from the London Stock Exchange
END
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