Oncimmune Holdings announces major recapitalisation

18th Oct 2024 11:09

(Sharecast News) - Oncimmune Holdings, an autoantibody profiling specialist, announced a major recapitalisation to fuel its next growth phase on Friday.

The AIM-traded firm said the move included a fundraising effort and the conversion of around €4m of existing debt into equity.

It came as the company continued to gain commercial momentum, marked by securing contracts with several leading global pharmaceutical firms.

The fundraising would comprise a minimum of £2m raised through a placing, subscription, and retail offer.

Oncimmune said the placing would raise approximately £1.725m through the issue of 11.5 million new shares at 15p each.

Additionally, a subscription by certain directors and shareholders aimed to raise at least £275,000.

Retail investors would meanwhile have the opportunity to participate through a retail offer to raise up to £300,000, bringing the total potential fundraising to £2.3m.

The board said the proceeds from the initiative would provide Oncimmune with additional working capital to accelerate its commercial efforts, especially following several key contract wins with top-tier pharmaceutical companies.

As part of the recapitalisation, about €4m of debt held by IPF Invest Co 2 would be converted into equity, significantly strengthening the company's balance sheet.

The directors said the fundraising would take place in two phases, with shares expected to start trading on 23 October and 11 November, depending on shareholder approval.

A general meeting was scheduled for 8 November to finalise the resolutions needed for the process.

At 1316 BST, shares in Oncimmune Holdings were up 11.4% at 15.48p.

Reporting by Josh White for Sharecast.com.