Sphere Medical (LON:SPHR) has confirmed that Neil Woodford’s Patient Capital Trust (LON:WPCT) has agreed to purchase £4mln worth of its shares in an upcoming placing.
The medical device maker told investors that Woodford’s closed-end fund, which listed in London today, has entered into a legally binding commitment to subscribe for 23,125,000 shares at 16p apiece.
This gives Woodford’s vehicle a 17.2% in Sphere, which makes monitoring and diagnostic devices for critically ill hospital patients.
Woodford’s Patient Capital Trust invests in early stage quoted and unquoted companies in the UK and US, which will be accompanied with positions in blue chips for access to dividends.
Speaking to Proactive last week, Wolfgang Rencken, Sphere’s chief executive, described Woodford’s investment as a “terrific endorsement of Sphere’s business”.
“It’s a signal to the market that we are a long-term investment opportunity,” he added.
Sphere shares added 0.4p to 19.9p in afternoon deals.