SkinBioTherapeutics secures £1.56m from new investors

2nd Aug 2024 14:57

(Sharecast News) - SkinBioTherapeutics announced on Friday that it has secured an investment of £1.56m on Friday, removing any uncertainty around its medium-term financing.

The AIM-traded firm said it raised the funds through placing 14,875,749 shares at 10.5p each, with new investors Premier Miton and Cynosure Capital.

It said it was not actively seeking additional funding, as it was already funded until the first quarter of 2025.

However, the investment removed any uncertainty about medium-term financing, would support the delivery of its current project pipeline, and strengthen its balance sheet, potentially facilitating future acquisitions.

The additional £1.44m net of expenses raised would be used to further the roll-out of AxisBiotix-Ps, support the commercialisation of its acne treatment, and potentially cover the deferred consideration for Dermatonics in 2025.

It would also provide general working capital and reduce the need for additional borrowing under any acquisition financing facilities.

The investment completed the share authorisation granted at the company's last annual general meeting in December, with the board saying it did not intend to seek further authorisation before the next AGM.

It said the placing shares were expected to be admitted to trading on AIM on 7 August and would rank equally with existing shares, including the right to receive dividends.

The issue price represented a 26.3% discount to the closing price on 1 August.

"It's extremely rare for small cap companies to be proactively approached by larger investors in this manner, and the support of Premier Miton and Cynosure Capital is a real endorsement of the huge potential of our business," said chief executive officer Stuart Ashman.

"This funding now extends our cash runway through 2025, removing any uncertainty in the short-to-medium term and underpinning our ability to deliver the exciting projects that we currently have underway.

"Whilst further dilution was not something we undertook lightly, we are not seeking any further authority to issue shares this year."

At 1435 BST, shares in SkinBioTherapeutics were down 1.77% at 14p.

Reporting by Josh White for Sharecast.com.