Collagen Solutions to raise up to £8m

Collagen Solutions is raising up to £8m through a conditional placing and open offer.

The company also said it had received a conditional commitment from Norgine Ventures to subscribe up to £4.0m in secured private bonds with warrants.

The net proceeds of the placing and open offer will 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 the placing demonstrated continued strong support by existing and new investors.

Chief executive Jamal Rushdy said: "This strategically important funding round strengthens our balance sheet and provides the resources to accelerate our 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.

"We are appreciative of the support from both existing and new shareholders, and to our stakeholders and global staff in the UK, US, South Korea, and New Zealand."

The company will raise approximately £6.2m, gross, through the issue of 123,799,999 new ordinary shares at 5p apiece.

In addition, in order to provide shareholders who have not taken part in the placing with an opportunity to participate, the company is providing all qualifying shareholders with the opportunity to subscribe for an aggregate of 35,924,258 shares at the offer price, to raise up to approximately £1.8m.

This is on the basis of 1 new ordinary share for every 5 existing ordinary shares held. The company has also received a conditional commitment from Norgine Ventures to subscribe for up to £4.0m in senior secured private bonds with warrants.

The notes are issuable in three tranches.

At 8:00am: (LON:COS) Collagen Solutions Plc share price was 0p at 5.63p