Deltex Medical Group recently announced that it has conditionally raised £1.7 million ($2.2 million) through a share placement and subscription. This fundraising initiative involved the placement of 833 million new shares at a price of 0.20 pence per share. It is important to note that this issuance price represents an 83% discount to the previous day’s closing price of 1.20 pence.
In addition to the share placement, Deltex Medical Group plans to raise up to £500,000 through a retail offer at the same issuance price. Furthermore, the company intends to propose a capital reorganization by subdividing its existing shares into one new share and one deferred share. The nominal value of each new share will be set at 0.01 pence.
The primary objective of this fundraising effort is to generate additional working capital and funding. These funds will be crucial for implementing the company’s strategy, covering internal restructuring costs, and making creditor payments. Failure to secure adequate funding could potentially result in administration, as stated by the company previously.
