REG - SkinBioTherapeutics - Investment of £1.56m from new investors

SkinbiotherapeuticsAnnouncement

02/08/2024 07:00

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RNS Number : 8976Y  SkinBioTherapeutics PLC  02 August 2024

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SkinBioTherapeutics plc

("SkinBioTherapeutics" or "the Company")

 

Investment of £1.56m from new investors

 

·      Company was not actively seeking further funding, already funded
to Q1 2025

·    However, investment removes any uncertainty about medium term
financing

·    Underpins delivery of current project pipeline and strengthens
balance sheet for potential acquisition

·    This uses the Company's remaining share capital authority this year

 

02 August 2024 - SkinBioTherapeutics plc (AIM: SBTX), a life science company
focused on skin health, has raised £1.56m (before expenses) via the
investment of 14,875,749 Placing Shares at the Issue Price of 10.5 pence per
share with new investors Premier Miton, the institutional investment manager,
and Cynosure Capital Pty Ltd.

The Company was not actively seeking any additional funding and, as stated in
the Full Year Trading update on 29 July 2024, it had sufficient cash to fund
it to 2025. Premier Miton and Cynosure Capital Pty Ltd were unable to
participate in the conversion of the Convertible Bond Facility due to it being
already fully allocated, and so have invested via a placing, as they were keen
to support the Company's upcoming projects.

The investment completes the share authorisation granted to the Company at
last year's Annual General Meeting on 29 December 2023 and it is not the
Company's intention to seek further authorisations before the next Annual
General Meeting.

The additional funding of £1.44m (net of expenses) will enable the Company to
continue to support the roll-out of AxisBiotix-Ps, the commercialisation of
the acne treatment and the potential payment of the Dermatonics deferred
consideration in 2025, as well as general working capital. It will also
strengthen the Company's balance sheet to support the potential acquisition,
removing the need for the proposal to borrow an additional £0.5m under any
acquisition financing facilities.

Application for Admission to Trading

The Placing Shares, when issued, will be fully paid and will rank pari passu
in all respects with the Existing Ordinary Shares, including the right to
receive all dividends and other distributions declared, made or paid after the
date of issue.

Application has been made for the Placing Shares to be admitted to trading on
AIM ("Admission"). It is expected that Admission will take place on or before
8.00 a.m. on 7 August 2024.  The issue of the Placing Shares is conditional
on Admission. The Placing has not been underwritten.

The issue price of 10.5 pence per New Ordinary Share represents a 26.3 per
cent. discount to the closing middle market price of 14.25 pence per Ordinary
Share on 1 August 2024, the last business day prior to the announcement of the
Placing.

Total Voting Rights

Following the admission on 7 August 2024 of the 14,875,749 new ordinary shares
under the Placing, the total number of issued shares and the total number of
voting rights in the Company will be 226,086,285.

The above figure of 226,086,285 should be used by shareholders in the Company
as the denominator for the calculations by which they will determine if they
are required to notify their interest in, or a change to their interest in,
the share capital of the Company under the Financial Conduct Authority's
Disclosure Guidance and Transparency Rules.

Stuart Ashman, CEO of SkinBioTherapeutics, said:

"It's extremely rare for small cap companies to be proactively approached by
larger investors in this manner, and the support of Premier Miton and Cynosure
Capital is a real endorsement of the huge potential of our business.

"This funding now extends our cash runway through 2025, removing any
uncertainty in the short-to-medium term and underpinning our ability to
deliver the exciting projects that we currently have underway. Whilst further
dilution was not something we undertook lightly, we are not seeking any
further authority to issue shares this year."

-Ends-

 

For more information please contact:

 

 SkinBioTherapeutics plc                            +44 (0) 191 495 7325

 Stuart J. Ashman, CEO

 Manprit Randhawa, CFO

 Cavendish Capital Markets Limited                  +44 (0) 20 7220 0500

 (Nominated Adviser & Broker)

 Giles Balleny, Dan Hodkinson (Corporate Finance)

 Charlie Combe (Broking)

 Dale Bellis, Tamar Cranford-Smith (Sales)

 Vigo Consulting (financial press)                  +44 (0) 20 7390 0230

 Rozi Morris                                        SkinBio@vigoconsulting.com

Notes to Editors

About SkinBioTherapeutics plc

SkinBioTherapeutics is a life science company focused on skin health. The
Company's proprietary platform technology, SkinBiotix®, is based upon
discoveries made by the translational dermatology team at the University of
Manchester.

The Company is targeting a number of skin healthcare sectors, the most
advanced of which are cosmetic skincare and food supplements to modulate the
immune system by harnessing the gut-skin axis. In each area
SkinBioTherapeutics plans to exemplify its technology through human studies.
The Company's first product, AxisBiotix-Ps™, a food supplement to address
the symptoms of mild to moderate psoriasis.

The Company listed on AIM in April 2017 and is based in Newcastle, UK. For
more information, visit: www.skinbiotherapeutics.com
(http://www.skinbiotherapeutics.com) .

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