By Joe Hoppe
Nanosynth Group PLC said Friday that it has conditionally raised 2.9 million pounds ($3.4 million) through a share subscription, and pledged the gross proceeds to a sharing agreement, allowing it to benefit from increases in share price.
The London-listed nanomaterials company said it issued 535 million shares at a price of 0.55 pence to institutional investor Lanstead Capital Investors L.P., representing a 21% premium to its closing mid-market price of 0.455 pence on Thursday.
The gross proceeds will be pledged back to Lanstead by the company in a sharing agreement. Through the agreement, Nanosynth is entitled to receive back the proceeds on a monthly basis over two years, subject to upwards or downwards adjustments depending on its share price at the time. This provides an opportunity for it to benefit from positive future share-price performance.
Nanosynth said the proceeds will be primarily used to fund its working-capital requirements as it looks to commercialize its bespoke nanoparticle technology.
The share price of the company needs to be, on average over the 24 months, at or above a benchmark price of 0.733 pence a share to receive the full gross subscription amount.
Write to Joe Hoppe at joseph.hoppe@wsj.com
Read More: Nanosynth Raises GBP2.9 Mln in Subscription; Pledges Proceeds to Share Agreement