WideCells Group PLC (LON:WDC) has reconfirmed it has received commitments for its shares placing of at least £1.8mln, and anticipates being able to close the fundraiser before the end of the month.
The sum expected to be raised is in excess of the £1.5mln it requires to continue as a going concern.
However, Widecells cautioned: "Should the placing not complete in accordance with its terms by June 29, or alternative funding found, the group would not be able to continue trading as a going concern and would be obliged to cease operations which could include administration, receivership, liquidation or other insolvency proceedings."
As at June 8, the group was in overdraft, but has taken a number of steps to manage its current working capital.
It has received £120,000 in directors' loans repayable next July; negotiated payment terms with existing trade creditors; agreed terms with its banks to extend its facilities; and revised its current growth plans downwards as well as cutting back on all discretionary expenditure to conserve cash.
WideCells also announced that the Live Market Bookbuild, which commenced on 10 May 2018, has now closed having received commitments to raise a further £513,000.
Accordingly , the firm added, it has received commitments representing a gross total of £2.036mln, including the monies committed under the bookbuild.
It said directors of the group have participated in the bookbuild, collectively subscribing for 6,100,001 placing Shares at 3p per share for a total of £183,000 out of the £513,000 committed.
Build revenue portfolio
Widecells said the net proceeds of the placing “will be used to expand the group's core end-to-end stem cell services as it looks to build its revenue profile”.
João Andrade, WideCells Group CEO, commented:"With this Placing and Bookbuild receiving subscriptions to raise gross proceeds of £2 million, which includes continued support from institutional shareholders, we are delighted that investors continue to recognise the strong value fundamentals of our business, which we firmly believe in, as can be indicated through a number of Directors participating in this Placing.
“Our focus now is to drive uptake of our innovative portfolio of stem cell services and ultimately build revenues as we embark on a new phase of growth. We look forward to providing further updates in due course."
Trading in WideCells shares on AIM was restored this morning, with the stock changing hands at 3.15p each around 9.30am, , down 24% on the pre-suspension price of May 3.
-- Adds Live Market Bookbuild, details, share trading restoration --