Horizon Discovery shores up capital with placing

Cell engineering company Horizon Discovery Group announced its intention to conduct a non-preemptive placing of up to 6,764,365 new ordinary shares on Friday, representing about 4.5% of its current issued share capital.

The AIM-traded firm said the net proceeds would be used to strengthen its financial flexibility.

It said that it believed it had sufficient working capital and liquidity in the event of a prolonged Covid-19 coronavirus-related downside scenario, when combined with the implementation of a range of mitigating actions.

“However, given the uncertainty around the Covid019 crisis, the board believes it is in the best interests of all stakeholders to strengthen the group's balance sheet,” Horizon Discovery said in its statement.

“The placing is considered a prudent move to both protect and grow the business during this period of disruption.

“The group's US listing process is currently delayed due to the market volatility, but the board intends to recommence the process when market conditions are considered to be more favourable, and believes the placing will support Horizon's aims to pursue a dual listing from a position of strength.”

Horizon Discovery said the placing would be conducted through an accelerated bookbuilding process, which was launched immediately following its announcement on Friday morning.

It said the resulting improved liquidity would allow it to continue its investment in strategic projects, including commercialising its base editing technology, e-commerce enhancements and its collaboration with Mammoth Biosciences.

Admission and that start of dealing in the placing shares was expected to take place on 22 April.

At 1335 BST, shares in Horizon Discovery Group were down 1.95% at 126p.