EMMA NEWLANDS – 15 February 2017
Biomaterials business Collagen Solutions has revealed plans to raise up to £12 million and said it expects to reach profitability in 2019.
The Glasgow-based company, which develops and produces medical-grade collagen components for use in regenerative medicine, said the funding will reinforce its balance sheet, boosting confidence, speed up the progress of its core business and help develop new products.
It plans to raise up to about £8m in gross proceeds from current and new investors via a placing and open offer, subject to shareholder approval.
Furthermore, the Aim-quoted firm said it has received a conditional commitment from Norgine Ventures to subscribe up to £4m in secured private bonds with warrants.
Norgine Ventures is backed by European healthcare firm Norgine, and says it provides debt and debt-like funding to “innovative, fast-growing companies in the fields of healthcare and life sciences, in Europe and the US”.
Collagen Solutions said the net proceeds of the placing and open offer will go towards investment in the development and commercialisation of high-value device products, bring forward the launch of collagen-based implant ChondroMimetic, a key focus this year, and boost growth of its existing medical collagen supply business.
