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Tekcapital raises cash to 'expand' commercialisation of IP portfolio

A “significant amount” of the cash proceeds will be used to expand the company's commercialisation of its portfolio of businesses
autonomous vehicle
Tekcapital's portfolio includes autonomous car software specialist Guident

Tekcapital PLC (LON:TEK) has agreed to raise £0.75mln from institutional shareholders to help with the commercialisation of its portfolio of technological intellectual property.

Investors have bought 9.4mln new shares at a price of 8p apiece in the placing, with the new shares representing roughly 14.7% of its enlarged shares in issue.

READ: Tekcapital's Salarius in talks with “numerous” snack-food companies for MicroSalt

The company, which has seen its shares rise from 6p at the start of the year to above 11p after progress at its portfolio companies, said a “significant amount” of the cash proceeds will be used “to expand Tekcapital's commercialisation of their investment portfolio of businesses”.

Executive chairman Clifford Gross said the placing has been successfully concluded with new and existing investors.

He believes there is “considerable value to be realised” from the portfolio of patent rights but also said some of the new cash would be used for working capital purposes.

The portfolio includes two wholly owned companies: Lucyd, maker of internet-enabled spectacles, and Guident, which specialises in software for autonomous vehicles.

It also owns 97.5% of Salarius, which is already selling its Microsalt to help reduce sodium consumption, and a 21.7% stake in Belluscura, developer of a portable oxygen concentrator for people suffering from chronic obstructive pulmonary disease that is on track to receive US regulatory clearance later this year.

Tekcapital last raised cash in October, a gross $1.16mln from the placing of 11.7mln shares at a price of 7.5p per share.

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