Belluscura PLC (AIM:BELL) has raised approximately £4 million with funds earmarked to purchase product inventory, and to support its balance sheet.
The medical device company is to issue just shy of 200 million new shares, priced at 2p each, with the placing taken up by existing and new institutional investors.
A separate retail offer aims to raise a further £500,000 on the same terms.
Explaining the background to the funding, Belluscura told investors it needed more working capital to meet demand in its growing market.
For 2024, it expects to report $4.40 million in 2024 revenue, a 433.7% increase from $0.83 million in 2023, mainly from X-PLOR sales despite operations delays related to PDAC approvals in the United States.
Backed by the equity raise, it said it expects $12.70 million in 2025 revenue and $16.00 million in annualised sales, potentially reaching EBITDA profitability.
Announced alongside the launch of the placing, after Thursday’s close, Belluscura is also undergoing a number of management changes.
In the executive positions, Robert Rauker and Simon Neicheril remain in place as chief executive and chief financial officer respectively.
Non-executive director Richard Piper is also staying, however Belluscura chair Adam Reynolds is to exit after the placing, to be replaced by current non-executive director Paul Tuson. Also exiting the business will be VP of sales Robert Fary and non-executive directors David Poutney and Dr Patrick Strollo.
Fray and Strollo will remain directors of the Belluscura LLC, the group’s US subsidiary and operating company.
Most of the share placing will be conditional upon shareholder approval, at a general meeting on 28 February.