Syntopix is raising £1.5m to finance further research and development.
The skin treatments developer is raising the cash through a share placing at 75p a share. The shares fell 5p to 91.5p, still well above the placing price. Syntopix is current valued at £5.25m.
Syntopix has to gain shareholder approval for the issue of new shares at a meeting on 6 August.
By the end of January 2008, Syntopix had £724,000 in cash. The cash outflow in the previous six months was £769,000. The placing will take the cash position back up to £1.77m.
Syntopix has signed a joint development agreement with Procter & Gamble, which wants to use Syntopix’s antimicrobial technology to enhance one of its existing products. A phase II proof of concept clinical study showed positive results for a treatment for people with acne-prone skin.
Syntopix was spun-out of Leeds University in 2003 with the backing of IP Group. It is involved in developing treatments for antibiotic resistance and diseases of the skin. Syntopix joined Aim on 23 March 2006, when it raised £4m (£3.3m net) at 177p a share.
IP Group held 16.2% of Syntopix after the flotation but the latest placing will take its stake back up to 24.5%. IP Group boss Alan Aubrey owns 1% of Syntopix.
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