Shares in Belluscura PLC (AIM:BELL) rose as much as 10% in early trading after the UK medical device company announced a $1.5 million convertible loan deal and plans for a wider $12 million equity raise to support growth and cover short-term cash needs.
The initial $250,000 tranche, arranged by US investor Omaha Value, includes warrants and could be followed by further drawdowns.
Belluscura has also agreed heads of terms for a direct subscription, alongside a shareholder open offer.
If fully subscribed and converted, Omaha and its investor group could own over 30% of the company.
The firm confirmed robust demand for its portable oxygen device, the X-PLOR, with May sales reaching $540,000.
It also reaffirmed plans to launch its new DISCOV-R product in the third quarter.
However, the company said it will miss the 30 June deadline for filing accounts, triggering a temporary trading suspension from 1 July pending fundraising and publication.
The shares settle at 0.75p, 0.023p higher.