Provexis (LON:PXS) revealed it has raised £280,000 of new capital through crowd-funding.
The AIM-quoted ‘nutraceutical’ group sold 62.2mln new shares via PrimaryBid.com, a crowd-funding site run by Darwin Strategic. The shares were priced at 0.45p each, which was a 22% discount to Thursday’s closing price.
Some £267,000 will be received net of costs, and the cash is earmarked for a collaboration project with the University of Oslo relating to the company’s Fruitflow product and blood pressure.
Fruitflow, a beneficial tomato extract, has shown in previous research the potential to give a clinically relevant reduction in systolic blood pressure.
Provexis chairman Dawson Buck highlighted that the ‘primarybid.com’ placing resulted in “relatively little” dilution to existing shareholders.
“The company is keen to minimise further dilution to shareholders, and its cost base and resources continue to be very tightly managed.
“The company remains focussed on moving into profitability as Fruitflow revenues increase.”
“The funds raised will be used to provide the company with additional working capital over the coming year, to include funding the second stage of the company's blood pressure lowering collaboration work, and they will further strengthen the company's balance sheet."