logo-loader
viewIntegumen

Integumen to raise approximately £1.368mln from share subscription and placing to provide working capital

The AIM-listed company said its broker, Turner Pope will issue, in aggregate, 91,253,530 new ordinary shares at 1.5p each

Cash raising

Integumen PLC (LON:SKIN) has said it will raise approximately £1.368mln from a share subscription and placing to provide working capital to help it deliver the £4mln in revenues guided for 2020

In a statement, the AIM-listed company said its broker, Turner Pope will issue, in aggregate, 91,253,530 new ordinary shares at 1.5p each, utilising all of the funding headroom currently available to the group without the need for further shareholder approval.

WATCH: Full interview: Integumen raises £1.4mln to support its 'continued rapid growth of sales'

The group noted that directors Gerard Brandon, Camillus Glover and Fionán Murray - respectively, the company’s CEO, COO and sales director - have agreed to subscribe equally for, in aggregate, 3,253,531 new ordinary shares under the subscription.

Integumen said it is intending to double the size of its Labskin laboratory in York, currently at 3,162 square feet, which could provide an estimated 10-fold increase on 2019 turnover capacity.

The company also gave a brief trading update, noting that in the nine months ended 30 September 2019, it achieved turnover of £0.591mln, compared with £0.116mln in the comparative period in 2018, with gross margins of 78%, and posted an EBITDA loss of £0.668mln, a reduction of £0.134mln on the comparative period in 2018.

It pointed out that overheads for the nine-month period ended 30 September 2019 totalled £1.129mln, an increase of £0.24mln, reflecting the incorporation of Rinocloud operating costs since 2 May 2019 and the appointment of additional laboratory and management staff. 

As at 30 September 2019, the group said, it had cash balances of £0.477mln.

Cash buffer

Brandon, Integumen’s chief executive Officer, commented: "Even with cash in the bank, a very low-geared (8%) balance sheet and profitability in sight, it is necessary for the company to provide verifiable assurances during a client's due diligence process that its cash buffer is strong throughout the duration of each client's engagement with the company.” 

He added: “The monies raised will provide this buffer and enable this continued rapid growth of sales to many leading global skincare companies through the expansion of both facilities and employees. 

“With the visibility we have of sales into next year, 2020 is already looking to be a good year for Integumen."

In early morning trade, shares in Integumen were 3.5% lower at 1.505p.

Quick facts: Integumen

Price: 1.685 GBX

AIM:SKIN
Market: AIM
Market Cap: £18.07 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Integumen named herein, including the promotion by the Company of Integumen in any Content on the Site, the Company receives from said issuer...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Integumen PLC 'the number one thought leader in skin microbiome and AI'

Integumen PLC's (LON:SKIN) Gerry Brandon recaps on 2019 and key highlights including the acquisition of RinoCloud and the deal done with Parity Group. Brandon adds that they're intending to double the size of its Labskin laboratory in York, currently at 3,162 square feet, which could provide...

4 weeks, 2 days ago

2 min read