Polarean Imaging PLC (AIM:POLX, OTC:PLLWF) has raised $10 million of new equity with the proceeds earmarked to accelerate the commercialisation of XENOVIEW, the company’s MRI technology.
The placing, priced at 1p per share, was cornerstoned by major shareholder and industry partners NUKEM and Bracco, which prior to the placing held 10.4% and 7.6% of the company respectively.
NUKEM, the leading global supplier of Xenon-129 (a vital agent used in MRI), took $2.5 million of the new shares whilst Bracco, a diagnostic imaging provider, bought $2 million of new shares.
After the funding, NUKEM and Bracco will own 18.2% and 14.4% of the company respectively.
Polarean directors and management meanwhile participated, taking a total of $321,000 of the new shares.
The remainder of placing share were bought by ‘institutional and other investors’, Polarean noted.
Net proceeds of the placing, expected at around $9 million, will support continued investment in research and development including the finalisation of the FDA plan to expand indications, and continue to develop strategic partnerships.
Polarean chief executive Christopher von Jako described the company as “delighted”.
“We express our gratitude to our existing shareholders who have reaffirmed their support in this transaction, including NUKEM Isotopes and Bracco Imaging," he said in a statement.
“Notably, we have also been able to attract demand from new investors in this transaction, which will allow us to significantly broaden our shareholder register.
He added: “The net proceeds of the fundraise will enable the company to substantially progress implementation of its five-pillar growth strategy in pursuit of its mission to revolutionise pulmonary medicine."
Polarean will now also launch an open-offer to qualifying existing shareholders, giving them the opportunity to invest alongside the investors in the placing – shareholders can purchase 9 open-offer shares for every 10 existing shares they own, priced at 1p per new share. The open-offer can raise up to $2.5 million of additional capital.
The placing price of 1p was substantially below Tuesday's closing market price of 3.7p, and the new shares will represent some 82% of the company’s enlarged share capital (on the basis that the open offer is fully taken up).