Celsis Sells Shares To Meet Development Cost

Celsis International of the UK has announced a Placing and Open Offer to sell around 16.5 million of its ordinary shares in order to finance the development of its contamination detection technology. This move comes as the firm announces its preliminary end-of-year results to March 31, including a fivefold increase in annual turnover and a pretax loss of L5.26 million ($8.25 million).

The offer, which is expected to raise L12.6 million ($19.8 million) in net revenue, has been set on the basis of 80 pence per share, compared to a May 17 middle-market price of 87p, and at three Ordinary shares for every eleven Ordinary shares held by existing holders. Dealings are expected to commence on June 15.

Although it has access to L4.8 million in cash and short-term investments, the company reports that "its revenue is not yet sufficient to cover expenditure and fund those investments required for the next stage of market development." Celsis' product development program focuses on three new contamination detection "biokits." Each employs a genetically-engineered luciferase component, an enzyme that when biologically active will fluoresce and as such can easily be detected, which is activated by the presence of adenosine triphosphate. ATP is ubiqitious to all living matter and is therefore found in association with microbial and other biological matter contamination.