Nanosynth raises £2.94m through sharing agreement with Lanstead

Nanoparticles synthesis technology company Nanosynth announced it was raising £2.94m on Friday, to fund its working capital requirements.

The AIM-traded firm said the funds would be raised through the issue of 535,000,000 new shares at a price of 0.55p each, to institutional investor Lanstead Capital Investors, together with a related sharing agreement under which Nanosynth was pledging the gross proceeds of the subscription.

It noted that the issue price represented a 20.9% premium to the closing mid-market price of 0.46p on 25 August.

The £2.94m gross proceeds would be pledged to Lanstead by the company under a sharing agreement, entitling Nanosynth to receive back those proceeds on a pro-rata monthly basis over 24 months, subject to adjustment upwards or downwards each month depending on the share price.

It said the monthly settlement amounts for the sharing agreement would be structured to begin about one month following admission of the new shares.

Nanosynth explained that the sharing agreement provided it the opportunity to benefit from positive future share price performance - an underlying reason for undertaking the fund raise in such a way.

The proceeds of the sharing agreement would be used primarily to fund working capital requirements, as the company looked to commercialise its “bespoke” nanoparticle technology.

“We are delighted to have entered into these funding arrangements with Lanstead at a particularly exciting time in the development of our business,” said chief executive officer Mark Duffin.

“The business is continuing to see significant levels of interest across the seven new verticals in which the company is focusing its efforts and it will update the market on further developments in due course.”

At 1131 BST, shares in Nanosynth Group were up 3.52% at 0.47p.

Reporting by Josh White at Sharecast.com.