BSF Enterprise PLC (LSE:BSFA) shares fell 18% to 2.15p after the company set out how it intends to use proceeds from a proposed £15 million equity raise backed by Blackstone Mercantile Group.
The company said the investment would accelerate commercial plans across its tissue-engineering businesses, including lab-grown leather, corneal repair and cell-culture media supplements.
Funding will support the launch of Elemental X, a platform for bio-engineered leather, with a first showcase planned for 2026. The group also expects to bring its first leather products to market, aimed at the ultra-luxury sector.
Its corneal subsidiary Kerato will use about £0.5 million of the new capital, alongside a Canadian government grant, to run a veterinary trial of its liquid cornea in 2026.
Meanwhile, 3D Bio-Tissues will expand sales of its CytoBoost range, which is designed to improve the recovery of cells after deep-freeze storage.
BSF added that it is considering acquisitions and joint ventures to broaden its technology base.
Chief executive Che Connon said: “We are hugely excited by the potential Blackstone Mercantile Group's investment provides… The funds will accelerate the commercial and technological roadmaps of LGL, Kerato and 3DBT… We look to the future with renewed confidence and enthusiasm.”