logo-loader

ECO Animal raises £12mln as antibiotic sales surge

Published: 10:14 03 Oct 2013 BST

no_picture_pai

Veterinary drug specialist ECO Animal Health (LON:EAH) has raised £12mln to help fund a surge in sales of Aivlosin, its antibiotic for pigs.

ECO launched Aivlosin in the US last year. Sales into Russia, another major market for pork products, also started recently to give global coverage for the water soluble drug.

The company had already flagged trading had started well in the current year, with first quarter sales substantially ahead of the prior year and North America also ahead of expectations. Aivlosin accounts for approximately 70% of all sales.

Because of the lengthy cash cycle in its business, as sales have grown so have the working capital demands to finance debtors and stocks. The cash call is to address this, the company said.

Of the £11.5mln net being raised, £6mln is for investment in the US, Russia and other markets while £5.5mln will help build up stocks of Aivlosin.

The shares are being placed at 190p, a near 12% discount to the closing price yesterday. Institutions took up the shares.

Directors and other staff have exercised options and sold 734,000 shares at the placing price, of which executive chairman Peter Lawrence is to buy 105,000 to take his holding in the company to 18.22%.

Oriole Resources outlines 2023 achievements and future exploration plans

Oriole Resources PLC (AIM:ORR) CEO Tim Livesey and chief financial officer Bob Smeeton join Proactive's Stephen Gunnion with details of the company's 2023 financial and operational performance. Livesey highlighted successful exploration programs in Cameroon, at the Bibemi and Mbe projects,...

15 minutes ago