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LONDON - Abingdon Health plc (AIM:ABDX) announced Monday it is seeking to raise up to £3.54 million through a placing and retail offer to accelerate its expansion in the United States and support working capital needs for new contracts.
The UK-based developer and manufacturer of rapid diagnostic tests plans to raise up to £3.34 million through a placing of up to 55,666,666 new ordinary shares at 6 pence per share, representing a 0.8 percent discount to its October 10 closing price. An additional £200,000 will be sought through a retail offer of up to 3,333,333 shares at the same price.
According to the company’s statement, the funds will primarily support expansion of Abingdon Health USA in Madison, Wisconsin, including fitting out additional manufacturing space, acquiring new equipment, and launching performance evaluation services.
The company also intends to strengthen working capital to execute recently secured contracts, including a $2.5 million companion diagnostic project with a global pharmaceutical company and a €2 million agreement with a European biotech firm.
Abingdon Health reported its revenue for fiscal year 2025 is expected to be in line with market expectations at £8.6 million, up from £6.1 million in FY24. The company projects FY26 revenue to reach £12.6 million.
"These funds will allow further expansion of Abingdon Health USA Inc, where we are seeing significant customer interest in our end-to-end service offering from US-based clients with a requirement for development and manufacturing work to take place in the USA," said Dr. Chris Hand, Executive Chairman of Abingdon Health.
The placing will be conducted through an accelerated bookbuild process by Zeus Capital Limited, acting as sole broker. The fundraising is conditional upon shareholder approval at a general meeting scheduled for October 30, with admission of the new shares expected around October 31.
Based on the press release statement, the company expects to have cash resources exceeding £4 million following completion of the fundraising.
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