Having alerted the market last Wednesday it was considering a fund-raising, Feedback PLC (LON:FDBK) is to pull the trigger on a £2mln placing and subscription.
The medical imaging company said the shares would be placed at 1.2p a share. Feedback shares closed at 1.4p on Friday.
WATCH: Feedback PLC gearing up for big launch of its clinical messaging product Bleepa
The newly issued shares would represent around 30.9% of the enlarged share capital of the company.
Feedback said the funds raised would be channelled towards completing the development of Bleepa, the company's clinical messaging product, and building up a sales and support team for when the product is launched next month at NHS Expo in Manchester.
Bleepa is intended to take over from Cadran as Feedback's messaging product. Cadran is Feedback's picture archiving and communications system (PACS), a product that, by Feedback's own admission, is positioned in a competitive market that shows little opportunity for future growth.
"I am delighted with the support shown by new and existing shareholders for our new product Bleepa. This is an evolution from Cadran devised and driven by the creativity of our CEO, Tom Oakley, and developed with the assistance of our partners Future Processing,” said Dr Alastair Riddell, the non-executive chairman of Feedback.
“We believe Bleepa is set to transform the outlook for the company and could change the way medical images are communicated in everyday clinical practice on mobile devices and laptops," he added.
The company also announced that, subject to shareholder approval, it would grant Oakley options over new ordinary shares in the company that, if exercised, would account for around 2.5% of the share capital, as enlarged by the proposed share placing.