Braveheart Investment Group PLC (AIM:BRH) said it has raised around £2.5mln in a share placing that it said will allow it to accelerate the development of a COVID-19 testing instrument by its subsidiary Paraytec.
The firm said it raised the funds through the placing of around 13.9mln new shares at a price of 18p each, a 20% discount to its closing price on Thursday.
READ: Braveheart subsidiary to do more tests on Alzheimer's scanner
Braveheart said its chief executive Trevor Brown has subscribed for 3.5mln placing shares while Free Association Books Ltd, a company connected to Brown, subscribed for 4.5mln. An executive director of the group, Vivian Hallam, also subscribed for 833,333 shares.
The company said the proceeds of the fundraising will enable it to accelerate the development of the COVID-19 test by taking direct control of the final design and engineering packages, while Paraytec will continue to seek out partners for licensing and development as well as a potential sale.
Braveheart said this strategy should allow Paraytec to deliver a finished product to market directly if it fails to find a satisfactory deal with a third party.
"We are delighted to have been able to raise this extra funding which will enable Paraytec to pursue its new strategy," Brown said in a statement.