Corporate News

Placing and Subscription to raise £1.9 million

08 April 2020

Concepta PLC (AIM: CPT), the innovative UK personalised healthcare company and developer of the proprietary self-test platform ("myLotus®"), the UK's most accurate home-use fertility tracking and pregnancy testing system, announces that it has conditionally raised gross proceeds of £1.9 million via a Placing and Subscription and issue of Convertible Loan Notes (the "Fundraise"). 

The net proceeds of c. £1,739,000 will be used to:

  • strengthen and develop the digital marketing effort, and appointing of core marketing personnel;
  • provide the additional working capital requirements of the Company to refine its manufacturing provision;
  • target strategic commercial contracts to exploit the myLotus ® product and technology nationally then internationally;
  • invest in developing and extending the Concepta portfolio to capture and provide greater insight into fertility for women and couples to maximise their chance of conception; and
  • continue to develop and improve its internal systems, controls and compliance including its digital 'app' developments, software, algorithms and data capture.

Highlights:

  • £1.9 million (before expenses) to be raised at an Issue Price of 0.8p via:
    • the conditional placing of 112,187,500 new Ordinary Shares with new and existing investors
    • the conditional subscription of 112,687,500 new Ordinary Shares by funds managed by Mercia Asset Management PLC ("Mercia") and various Directors of the Company
    • the conditional subscription for £101,000 of Convertible Loan Notes by Mercia
  • The Fundraise will be subject to Concepta's shareholders approving resolutions to increase the Directors' authority to allot the Placing Shares, the Subscription Shares and the new Ordinary Shares that would be required to be allotted and issued upon the exercise in full of the Convertible Loan Notes; as well as Ordinary Shares up to the aggregate nominal value of £88,315.
  • Novum Securities acted as Placing Agent to the fundraise
  • Proposed sub-division of each Existing Ordinary Shares of 2.5p be sub-divided into one Ordinary Share of 0.1p and one Deferred Share of 2.4p.
  • A Circular which sets out further details of the conditional Fundraise, the subdivision of share capital, and also includes a Notice of General Meeting, will be sent to shareholders later today (the "Circular"). The General Meeting is to be held at 52 Ninian Road, Cardiff CF23 5EJ at 11.00 a.m. on 24 April 2020.
  • In light of the UK Government's public health advice in response to the COVID-19 outbreak, all Shareholders are encouraged to submit their form of proxy appointing the chairman of the General Meeting as proxy, and the Board requests that no Shareholders should attend the General Meeting.   Only the formal business of the Resolutions will be carried out at the General Meeting and no update will be provided.
  • To enable Shareholders to ask questions relating to the matters to be dealt with at the General Meeting, Shareholders are requested to email any questions to the Company (via [email protected] ) by no later than 6.00 p.m. on 22 April 2020. Answers will be posted on the Company's website by no later than 6.00 p.m. on 23 April 2020.
  • To register for dial-in details and to submit any questions please contact Walbrook PR via email at  [email protected]m  or call +44 (0)20 7933 8787.
  • Application will be made for the Placing Shares and the Subscription Shares to be admitted to trading on AIM, with dealings expected to commence on 27 April 2020, on the assumption that, inter alia, the Resolutions are passed.

Commenting on outlook and focus, Penny McCormick, Chief Executive Officer, commented:

"We are very grateful for the continuing support from our existing shareholders and welcome new investors who have participated in the Placing and Subscription, in particular the support shown by our largest shareholder Mercia.

"This fundraise provide us with a solid platform from which to drive the commercial success of our flagship self-test fertility test myLotus ®. I remain confident that we have a business with substantial upside opportunity and these funds will allow us to deliver upon its potential."

The Circular, extracts of which are included below, will also be available later today via the Company's website at: 

https://conceptaplc.com/investors-dashboard/circulars

 

 

Concepta plc

www.conceptaplc.com

Penny McCormick , Chief Executive Officer

via Walbrook PR

Maddy Kennedy, Chief Financial Officer

 
  

SPARK Advisory Partners Limited (NOMAD)

Tel: +44 (0)20 3368 3550

Neil Baldwin

 
  

Novum Securities (Broker)

Tel: +44 (0)20 7399 9400

Colin Rowbury

 
  

Walbrook PR Ltd (Media & Investor Relations)

Tel: +44 (0)20 7933 8780 or [email protected]

Paul McManus

Mob: +44(0)7980 541 893

 

About Concepta PLC ( www.conceptaplc.com )

Concepta PLC is an AIM-quoted pioneering UK healthcare company that has developed a proprietary product, myLotus®, targeted at the personalized mobile health market with a primary focus on hormone testing and increasing a woman's chances of naturally getting pregnant and to provide insight to unexplained infertility.

myLotus® is currently the only consumer product which allows both quantitative and qualitative home (self-test) test measurement of a woman's personal luteinizing hormone (LH) during ovulation and human chorionic gonadotropin (hCG) hormone level during pregnancy, facilitating higher conception rates and early diagnosis of fertility issues. The proposition of myLotus®   is to empower women to better understand their hormone levels and menstrual cycle and help women conceive naturally by identifying their window of fertility and optimal time for conception.

The Company has received CE-mark certification for myLotus®   and has launched its first product in the UK. The Company is preparing plans to roll-out across the core EU countries in 2020.

myLotus® is expected to be beneficial to users who have been unable to conceive after 6 months of trying. This highly motivated target group of women won't typically be offered medical intervention until after 12 months of unsuccessfully trying to conceive, with IVF not usually offered until after two years of trying to conceive. Research indicates couples start to take positive action ahead of this time typically with little medical support to help them do so.