AIM modelling company raises £450,000 at a steep discount, betting that investment in growth will justify near-term pain for shareholders
Shares in Physiomics, the AIM-listed mathematical modelling and data science company serving the pharmaceutical industry, fell 27% to 0.33p after it announced a placing at 0.3p per share, a discount of approximately 33% to the previous closing price, leaving the company valued at less than £1 million.
The placing raises £450,000 gross, with a further £50,000 available through a retail offer open to existing shareholders, closing on 12 March.
The board is making the case that short-term dilution is justified by what the proceeds will fund, including investment in business development across its modelling and biometrics service lines, and continued development of its personalised dosing software.
Underlying trading numbers offer some support for that argument, with Physiomics reporting 46% year-on-year income growth for the financial year ending June 2025 and a record first half for the current year.
Chief executive Peter Sargent said the company was on track to meet market expectations for the full year, which would represent record total income growth of 27%.