REG - Belluscura PLC - Trading update and proposed placing

BelluscuraAnnouncement

12/06/2024 07:15

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RNS Number : 0506S  Belluscura PLC  12 June 2024

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12 June 2024

 

Belluscura plc

("Belluscura" or the "Company")

 

Trading update and proposed placing

 

 

LONDON, U.K. and PLANO, TX, U.S. (12 June 2024). Belluscura plc (AIM:BELL), a
leading medical device developer focused on lightweight and portable oxygen
enrichment technology, is pleased to update Shareholders regarding progress
made since the start of the year and to inform Shareholders that the Company
is proposing to conduct a fundraising by way of a conditional placing of
convertible loan notes (the "Convertible Loan Notes") to raise net proceeds of
up to £2.4 million (the "Placing").

 

Trading update

 

Studies continue to support the use of lightweight portable oxygen
concentrators to treat patients with chronic respiratory failure.  A recent
study((1)) published on 1 June 2024 carries an analysis of over 240,000
patients in the French National Health Claims Database.  The study revealed
that the use of portable oxygen concentrators, either alone or in combination
with other oxygen delivery devices, was cost effective and associated with
improved survival, compared to the other stationary oxygen concentrators,
oxygen cylinders, or liquid oxygen delivery devices used as a sole treatment
modality.

 

The Company has made significant progress in recent months.  Sales of the
X-PLOR portable oxygen concentrator in the U.S. in the three months to May
2024 were $820,000, monthly sales having doubled over this period.  The
Company achieved sales of $450,000 in May 2024, its highest recorded monthly
sales figure, across both D2C and B2B channels.  The Board anticipates demand
for the X-PLOR to remain strong through the remainder of 2024.

 

The Board is also pleased to announce that testing and validation of the
DISCOV-R portable oxygen concentrator continues in line with previously
announced plans, remaining on schedule to ship product this month. Interest in
DISCOV-R remains very strong. As stated previously, initial sales will be
through the Company's D2C sales platform with B2B sales beginning in late Q3.

 

Sales in China continue to grow, with X-PLOR sales of over $200,000 in May
2024.

 

As at 31 May 2024 the Company's (unaudited) cash balances were $1.1 million.

 

The Company confirms that its audited results for the year ended 31 December
2023 are expected to be announced on or before 28 June 2024.

 

Convertible Loan Note Issue

 

Final terms of the Placing are yet to be agreed, however it is anticipated
that the Convertible Loan Notes will be redeemable after five years with a
cash coupon of 7 per cent. per annum.  The Convertible Loan Notes will be
convertible into Belluscura ordinary shares of 1 penny each on terms yet to be
finalised.  The Placing will be conditional upon approval by Shareholders at
a general meeting of Shareholders to be convened to obtain authority for the
Company to issue the Convertible Loan Notes on a non pre-emptive basis under
the Companies Act 2006..

 

The Convertible Loan Notes will not be admitted to trading on any stock
exchange.

 

The Company has received expressions of interest to participate in the Placing
from various interested potential investors.  Certain of the Directors have
also expressed an interest in participating in the Placing.

 

The Placing will be undertaken by Dowgate Capital Limited on behalf of the
Company.

 

An announcement containing further details of the Convertible Loan Note
Instrument and the terms of the Placing will be issued shortly.

 

Adam Reynolds, Chairman, commented:

 

"The Group has made significant progress in recent months, culminating in
record sales for X-PLOR in May 2024.

 

"The proposed fundraise will provide the Group with the flexibility to
capitalise on the strong anticipated demand for X-PLOR through the remainder
of 2024 and the considerable interest in DISCOV-R, which is expected to start
shipping this month."

 

Patrick J Strollo, Jr MD, Chief Medical Officer and Director of Belluscura
plc, commented:

 

"At less than four pounds in weight, the X-PLOR POC facilitates mobility and
improves quality of life in oxygen dependent patients.

 

"The recent French study provides further support that small, lightweight,
oxygen concentrators are cost effective and improve survival in vulnerable
patients with chronic respiratory failure."

 

(1)   Glezer, S., Mercier, G., Coursier, JM. et al.  Health and Economic
Impact of Different Long-Term Oxygen Therapeutic Strategies in Patients with
Chronic Respiratory Failure: A French Nationwide Health Claims Database (SNDS)
Study. Pulm Ther (2024). https://doi.org/10.1007/s41030-024-00259-x
(https://protect.checkpoint.com/v2/___https:/doi.org/10.1007/s41030-024-00259-x___.bXQtcHJvZC1jcC1ldXcyLTE6bmV4dDE1OmM6bzo0NTk0NzczY2QxOWFkNzNmNTA1MzVhOTQ1MDQzMjY3ODo2OmE1ZDg6YmQ3YWZkMGYzZWY2NTZlMGIzZjNhNjZiNTE3ZTBlNWRmNGNkNjA2M2JhM2JlNTI3MDU3YjVmNGMwMzg1YWY0ZjpwOlQ)

 

 

For further information please contact:

 

 Belluscura plc                             Tel: +44 (0)20 3128 8100
 Adam Reynolds, Chairman

Robert Rauker, Chief Executive Officer

Simon Neicheril, Chief Financial Officer

 SPARK Advisory Partners Limited            Tel: +44 (0)20 3368 3550

 Nominated Adviser
 Neil Baldwin / Jade Bayat

 Dowgate Capital Limited                    Tel: +44 (0)20 3903 7715

 Broker
 Russell Cook / Nicholas Chambers

 MHP                                        Tel: +44 (0)20 3128 8100

 Financial PR & Investor Relations          email: Belluscura@mhpgroup.com
 Katie Hunt / Matthew Taylor

 

 

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