SkinBioTherapeutics PLC (LON:SBTX) has raised £4mln from existing and new institutions that will help fund work on new product applications for its technology and will also be used to expand its research and development capabilities.
Up to a further £500,000 could be banked from an open offer of stock to current shareholders not involved in the placing.
The proceeds of the fundraisers will be deployed to explore other uses for SkinBiotix - which harnesses the power of the microbiome found on the skin – in oral and hair indications.
It will also be invested to expand the group’s research capabilities by adding its own facilities to those it uses at the University of Manchester.
SkinBioTherapeutics said it also wants to explore both the launch of an own-label cosmetic product and further partnering opportunities.
Last year the company struck a deal with speciality chemicals giant Croda, which is using the SkinBioTherapeutics-developed active ingredient in cosmetics.
It also has an agreement with a company called Winclove to develop a food supplement to treat the symptoms of psoriasis.
“Both development tracks are making great progress,” SkinBio chief executive Stuart Ashman said in a statement.
"The new funds will help accelerate the development of other areas for our technology - for example in oral care and in hair, whilst we continue to progress our human study in psoriasis. We will also be able to strengthen our R&D resources, infrastructure and team, which have, until now, been kept minimal.
"We are entering an exciting chapter for the company into one of late-stage development and commercialisation, whilst continuing to broaden the microbiome base of the company."