Ondine Biomedical Inc (AIM:OBI) announced plans to raise between £1 million-£2.5 million primarily from existing investors via a funding round led by Sankofa Investment Partners.
New stock will be issued at 9p - a modest premium to Thursday's close - and the proceeds will support the "accelerating commercialisation momentum" in Canada, the UK, Spain and Mexico for Ondine's groundbreaking Steriwave photodisinfection technology.
"We are pleased to have the support of existing and new investors through this fundraising which meets our near-term working capital needs and assists our rapid commercial growth rate," said chief executive Carolyn Cross.
"This funding will take us forward commercially and further our discussions with industry partners on our clinical, financial, and global distribution objectives."
The company said it is seeking further financial backing from strategic partners and "non-dilutive funding sources" for a phase III clinical trial of its tech and its US Food and Drug Administration (FDA) submission.
Together with strategic cost initiatives, the proceeds from the fundraiser will provide a runway through at least the first quarter of next year.