Medical fluids monitoring devices developer Deltex Medical Group is raising up to £5.04m via a placing and open offer at 11p a share.
Deltex needs additional cash to invest in further sales and training resource in the US. An additional ten hospitals in the US want to use Deltex’s monitors. Deltex wants to increase US sales territories from three to five. The investment in the US will cost £1.7m.
A further £900,000 will be invested in improving probe manufacture and increasing capacity, as well as product development. The rest of the cash will cover cash outflows from operations.
The placing will raise £4m. A one-for-18 open offer can raise up to £1.04m. Two non-executive directors are investing £200,000 in the placing.
Sales of probes are growing in most markets but destocking has hit UK sales – although sales should improve in the second half.
Losses in 2014 and 2015 will be higher than forecast but management is hopeful that the benefits will show through in 2016.
At 11.63p a share, down 2.13p, Deltex would be valued at £24.1m of the placing, but not the open offer, shares are included.
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