(Alliance News) - Yourgene Health PLC shares dropped on Wednesday, after it said it plans to raise up to GBP6.0 million through the issue of 1.67 billion new shares priced at 0.30 pence each. The issue price represents a 84% discount to Yourgene's closing share price of 1.85p on Tuesday, being the last business day before the announcement. Shares in the Manchester-based molecular diagnostics company were down 14% at 1.60 pence each in London on Wednesday afternoon.
The capital raising includes a placing of at least 1.28 billion new shares at the issue price, raising a minimum of GBP3.9 million. In addition, some Yourgene directors plan to subscribe to 383.3 million new shares at the issue price. Yourgene also intends to carry out a separate offer of up to 333.3 million new shares to raise a further GBP1.0 million.
The company noted that it plans to use the proceeds to provide near-term working capital and facilitate further restructuring of the company's cost base, removing GBP2.0 million of annual operating expenditure. Yourgene added that it will use any additional proceeds to fund regulatory approvals and existing product enhancements. Singer Capital Markets Securities Ltd is acting as sole bookrunner and sole broker in connection with the placing.
Cairn Financial Advisers LLP is acting as nominated adviser to Yourgene in connection with the admissions. By Sophie Rose, Alliance News reporter Comments and questions to EMAIL Copyright 2022 Alliance News Ltd. All Rights Reserved.