GENinCode Plc Raises £4.0 Million Through Placing and Subscription
Why we think this is neutral
The RNS announcement indicates that GENinCode Plc is conducting a conditional Placing and Subscription to raise a minimum of £4.0 million. The Issue Price of 3.7 pence represents a relatively small discount of 5.1% to the closing middle market price, which suggests the market may view the fundraising positively. However, the relatively small size of the fundraising may raise some concerns about the company's longer-term funding requirements. Overall, the information provided is neutral, as the fundraising appears to be a routine event to support the company's growth plans.
Key Points
- GENinCode Plc is raising a minimum of £4.0 million through a Placing and Subscription
- The Placing is expected to raise £3.26 million, while the Subscription will raise £0.74 million
- The Issue Price of 3.7 pence represents a 5.1% discount to the closing middle market price
- The proceeds will be used to fund the company's US regulatory and commercialization plans, as well as expansion in the UK and Europe
Summary
GENinCode Plc, a genetics company focused on the prevention of cardiovascular disease and the early detection of ovarian cancer, is conducting a conditional Placing and Subscription to raise a minimum of £4.0 million (before expenses) through the proposed issue of a minimum 108,108,108 New Ordinary Shares. The Placing is expected to raise a minimum of £3.26 million, while the Subscription will raise £0.74 million. The Issue Price of 3.7 pence represents a 5.1% discount to the closing middle market price of 3.9 pence per Ordinary Share on 13 February 2025. The proceeds will be used to fund the completion of the Company's US regulatory and reimbursement program, drive commercialization in the US, and expand its activities in the UK and Europe.