Results of Placing

RNS Number : 0901C

Provexis PLC

27 September 2018

 

27 September 2018

Provexis plc

Placing of new ordinary shares to raise £0.395 million

Provexis plc ('Provexis' or the 'Company'), the business that develops, licenses and sells the proprietary, scientifically-proven Fruitflow® heart-health functional food ingredient, is pleased to announce it has raised a gross £395,000 via a placing (the 'Placing'), conditional on admission to trading on AIM, of 98,750,000 new ordinary shares of 0.1p each (the 'New Provexis Shares') with new and existing investors.

The New Provexis Shares have been issued at a price of 0.40p per share (the 'Placing Price'), and rank pari passu in all respects with the existing ordinary shares of 0.1p each in Provexis. No commissions or expenses will be payable on the issue of the New Provexis Shares.

The Placing Price represents a premium of 5.3 per cent. to the closing mid-market price per Ordinary Share on 26 September 2018, being the latest practicable date prior to this announcement.

Application will be made to the London Stock Exchange for the New Provexis Shares to be admitted to trading on AIM. It is expected that the admission will become effective and that trading in the New Provexis Shares will commence on 5 October 2018 ('Admission').

Following Admission, the Company's enlarged issued share capital will comprise 1,983,988,174 ordinary shares with voting rights. The Company does not hold any shares in treasury. This figure of 1,983,988,174 ordinary shares may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA's Disclosure and Transparency Rules.

The Company intends to issue its preliminary results for the year ended 31 March 2018 later today, Thursday 27 September 2018.

This announcement contains inside information.

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For further information please contact:

Provexis plc                                                     Tel:      [phone]

Dawson Buck, Chairman                                           [e-mail]

Ian Ford, Finance Director

Cenkos Securities plc                                      Tel:      [phone]

Mark Connelly

Stephen Keys

Notes for editors

About Provexis plc

AIM-listed Provexis is focused on the development, licensing and sales of its proprietary, scientifically-proven Fruitflow® heart-health functional food ingredient.

In May 2009, the company's Fruitflow® technology was the first to be substantiated by the European Food Safety Authority ('EFSA') under the then new Article 13(5) for proprietary and emerging science. In December 2009 the European Commission authorised the health claim 'Helps maintain normal platelet aggregation, which contributes to healthy blood flow', which was the first wording to be authorised under Article 13(5).

In June 2010 it was announced that the company had entered into a long-term Alliance Agreement with DSM Nutritional Products to commercialise Fruitflow®, through sales as an ingredient to brand owners in the food, beverage and dietary supplement categories. The Alliance is seeing the partners collaborate to develop Fruitflow® in all major global markets, through an effective commercialisation of current formats and pioneering new and significant applications. DSM is responsible for: manufacturing; marketing; and selling via its substantial sales force. Provexis is responsible for contributing scientific expertise necessary for successful commercialisation, and for maintaining and strengthening the breadth and duration of its patent and trade mark coverage for Fruitflow®, seeking to maximise the commercial returns that can be achieved from the technology.

An increasing number of further commercial projects have been initiated by DSM with prospective customers, including some prospective customers which are part of global businesses, with good prospects for these projects to be launched as consumer products. Interest in the technology exists in all major global markets.

In June 2016 the Company launched a high quality dietary supplement product containing Fruitflow® and Omega-3 which is being sold from a separate, dedicated website www.fruitflowplus.com on a mail order basis, the product is also available to purchase from Amazon.co.uk.

The Company has been engaged in a two stage collaboration agreement with the University of Oslo to undertake further research into the relationship between Fruitflow® and blood pressure regulation. In December 2016 the Company announced the results from the second stage of the collaboration, a pilot study which indicated that a standard dose of Fruitflow® significantly lowered average 24-hour systolic blood pressure. Systolic and diastolic blood pressure were shown to be significantly lower whilst trial subjects were awake, a clinically relevant reduction in blood pressure. In September 2017 the results from the blood pressure collaboration were published in the International Journal of Food Sciences and Nutrition.

In April 2017 the Company announced it had entered into a memorandum of understanding with BY-HEALTH Co., Ltd ('BY-HEALTH') which is intended to result in a research and collaboration agreement with BY-HEALTH for Fruitflow®. The Company also confirmed separately that Provexis and DSM are working with BY-HEALTH to support the planned launch of some Fruitflow® based products in the Chinese market. BY-HEALTH is a substantial Chinese listed dietary supplement business.

In December 2017 the Company announced the filing of a patent application relating to the use of Fruitflow® in protecting against the adverse effects of air pollution on the body's cardiovascular system. Recent laboratory work has shown that Fruitflow® can reduce the platelet activation caused by airborne particulate matter, such as that from diesel emissions, by approximately one third. The beneficial effects of this reduction can be observed in laboratory models representing healthy subjects as well as in models representing subjects with an underlying cardiovascular problem.

In August 2018 Fruitflow®+ Omega-3 was listed in more than 660 Holland & Barrett stores across the UK and Ireland, together with Holland & Barrett Online.

Provexis was founded in 1999 and is headquartered in Reading, Berkshire.

Provexis shares are traded on the AIM market of the London Stock Exchange under the ticker symbol PXS.

For further information, please visit www.provexis.com

 

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