31 October 2019 – fund raising

The company has announced that it is to raise £7m through an issue of shares at 1p each.  Some £5m will be raised through a placing of 505m shares with existing and new institutional investors with £2m being raised through an open offer to existing shareholders.  This will fund the group’s development until the end of 2020 when another fund raising will be required with the group not expected to be cash flow neutral until the end of 2021.  Clearly, the long term prospects of the group are potentially exciting, but there seems little incentive to invest at this time so the shares are no more than a HOLD.