Collagen Solutions announces capital hike

14th Feb 2017 12:02

(ShareCast News) - Collagen Solutions announces a placing and open offer to raise up to £8.0m, and a conditional commitment from Norgine Ventures to subscribe for £4.0m in secured private bonds with warrants.AIM-quoted Collagen said the placing and open offer were subject to shareholder approval.The placing was of 123.8m shares at 5p each, while the open offer was for a total of 35.9m offer shares on the basis of 1 share for every five at 5p each.Net proceeds would go towards investment in the development and commericalisation of high value device products, accelerate the launch of ChondroMimetic and aid expansion of the existing medical collagen supply business," the company said.CEO Jamal Rushdy said the strategically important funding round strengthened Collagen's balance sheet and provided the resources to accelerate its core biomaterials and tissue business."Furthermore, the capital will provide the company with the opportunity to fund the development of a range of exciting new products for use in the rapidly emerging field of regenerative medicine," he added in a statement.At 10:57 GMT, shares in Collagen were flat at 5.62p each.