Biome Technologies plc (LON:BIOM), a leading bioplastics and radio frequency technology business, has announced that it has conditionally raised £1.1 million before expenses by way of a placing of and subscription for 916,667 new ordinary shares in the Company at a price of 120 pence per share.
· Biome proposes to raise gross proceeds of £1.1 million via the Fundraise to accelerate Biome Bioplastics’ growth and development
· Net proceeds of the Fundraise are expected to be used for:
· Growth capital needed to support revenue growth with existing customers and new bioplastics projects that are scaling up and are expected to drive a significant increase in revenues over the next 18 months, and the associated working capital requirements
· Maintaining an increased investment in sales activities, development and logistics spending to support and further accelerate the growth of the Bioplastics business
· Undertaking the Financing now will enable the Company to capture and support the momentum of the Bioplastics division
· Market drivers in favour of bioplastics include the continued focus by leading brands as well as the public on environmental issues caused by non-biodegradable oil-based plastics and the need for alternatives
· Pipeline of projects underway with a range of mid-sized and multi-national businesses expected to drive growth in the coming years from existing customers as well as new customers and new products
· Key customers are based in the US – with the Group’s internationally outsourced manufacturing, the business is not anticipating major disruption during withdrawal from the European Union
The Fundraise comprises a placing of 875,000 new ordinary shares and a subscription for 41,667 new ordinary shares. Of the New Ordinary Shares, 256,997 will be issued pursuant to the Company’s existing share authorities. The issue of 618,003 New Ordinary Shares pursuant to the Placing and the issue of 41,667 New Ordinary Shares pursuant to the Subscription are conditional on, inter alia, the approval of Shareholders at a general meeting of the Company to be held on 12 October 2020, further details of which are set out below.
Paul Mines, Chief Executive Officer of Biome, commented:
“Biome Bioplastics had a tremendous first half, notwithstanding the need to overcome issues arising from the pandemic and associated lockdowns. This Fundraising will enable the business to expand its customer and product base, accelerating its growth further for the benefit of shareholders.“
Total Voting Rights
Application has been made to the London Stock Exchange for the First Placing Shares to be admitted to trading on AIM (“First Admission”). It is expected that First Admission will become effective and that dealings in the First Placing Shares on AIM will commence on or around 1 October 2020. On First Admission, the Company will have 3,055,522 ordinary shares of 5p each in issue, each with one voting right. There are no shares held in treasury. Therefore, the Company’s total number of ordinary shares and voting rights will be 3,055,522 and this figure may be used by Shareholders from First Admission as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the FCA’s Disclosure Guidance and Transparency Rules.
Application will be made to the London Stock Exchange for the Second Placing Shares to be admitted to trading on AIM (“Second Admission”). It is expected that Second Admission will become effective and that dealings in the Second Placing Shares on AIM will commence on or around 14 October 2020. On Second Admission, the Company will have 3,673,525 ordinary shares of 5p each in issue, each with one voting right. There are no shares held in treasury. Therefore, the Company’s total number of ordinary shares and voting rights will be 3,673,525 and this figure may be used by Shareholders from Second Admission as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the FCA’s Disclosure Guidance and Transparency Rules.
Application will be made to the London Stock Exchange for the Subscription Shares to be admitted to trading on AIM (“Third Admission”). It is expected that Third Admission will become effective and that dealings in the Subscription Shares on AIM will commence on or around 11 December 2020. On Third Admission, the Company will have 3,715,192 ordinary shares of 5p each in issue, each with one voting right. There are no shares held in treasury. Therefore, the Company’s total number of ordinary shares and voting rights will be 3,715,192 and this figure may be used by Shareholders from Third Admission as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the FCA’s Disclosure Guidance and Transparency Rules.
Certain of the Directors and Persons Discharging Managerial Responsibilities have participated in the Fundraise, pursuant to the Placing. John Standen, Non-Executive Chairman, and his wife Kathleen Standen have subscribed for 12,500 New Ordinary Shares in aggregate, which represents an amount of £15,000 at the Issue Price. Paul Mines, Chief Executive Officer, has subscribed for 12,500 New Ordinary Shares, which represents an amount of £15,000 at the Issue Price. Sally Morley, the Managing Director of Biome Bioplastics, has subscribed for 4,167 New Ordinary Shares, which represents an amount of £5,000.40 at the Issue Price. The FCA notifications, made in accordance with the requirements of the EU Market Abuse Regulation, are appended below.
A Circular containing the Notice of General Meeting will be posted to Shareholders later today and will be made available shortly on the Company’s website at www.biometechnologiesplc.com.
The above summary should be read in conjunction with the full text of this announcement and the Circular, extracts from which are set out below. All capitalised terms used throughout this announcement shall have the meanings given to such terms in the Definitions section of this announcement and as defined in the Circular.
Extracts from the Circular
(The information below has been extracted from the Circular without amendment. Therefore, references to pages or paragraphs below refer to the relevant pages or paragraphs of the Circular.)
Proposed Placing and Subscription
Notice of General Meeting
The Company announced today that it proposes to raise £1.1 million (before expenses) by way of the Fundraise, comprising a Placing of a total of 875,000 Placing Shares in two tranches as to (i) 256,997 First Placing Shares; and (ii) 618,003 Second Placing Shares, and the Subscription for 41,667 Subscription Shares, all at the Issue Price of 120 pence per New Ordinary Share.
The allotment of the Second Placing Shares is conditional, inter alia, upon First Admission having occurred and the Company obtaining approval of Shareholders of the Resolutions to be proposed at the General Meeting, to provide sufficient authority to enable allotment of the Second Placing Shares, disapply statutory pre-emption rights which would otherwise apply to the allotment of the Second Placing Shares and to renew the allotment authority and disapply statutory pre-emption rights which were previously approved at the Company’s annual general meeting. The Subscription is conditional on First Admission, the passing of the Resolutions at the General Meeting, Second Admission and the admission of the Subscription Shares to trading on AIM.
It is intended that the net proceeds of the Fundraise will be used to fund the growth and development of the Group’s Biome Bioplastics division. The purpose of this letter is to explain to Shareholders the background to and reasons for the Fundraise and to seek their approval of the Resolutions.
The Company is seeking the approval of Shareholders to the Resolutions which are to be put to the General Meeting of the Company to be held at Starpol Technology Centre, North Road, Marchwood, Southampton, Hampshire SO40 4BL at 2.30 p.m. on 12 October 2020. The Notice of General Meeting is set out at the end of this Circular.
All shareholders are encouraged to vote by proxy in accordance with the instructions set out in the Notice of General Meeting. It is particularly important that shareholders vote by proxy as they will be unable to attend in person. All shareholders are encouraged to appoint the Chairman of the meeting as their proxy rather than a named person, as they will not be permitted to attend the physical meeting. The Form of Proxy must be received by our Registrar as soon as possible and by no later than 2.30 p.m. on 10 October 2020. Shareholders’ attention is drawn to paragraph 7 of Part I of this document in respect of the COVID-19 pandemic.
2. Background to and reasons for the Fundraise
Biome is a growth-oriented, commercially-driven technology group that comprises two divisions, Biome Bioplastics and Stanelco RF Technologies. Biome Bioplastics is a leading developer of highly-functional, bio-based and biodegradable plastics. Biome Bioplastics’ mission is to produce bioplastics that challenge the dominance of oil-based polymers. Stanelco RF Technologies designs, builds and services advanced radio frequency (RF) systems, with a particular focus on the fibre-optics market.
Under the glare of environmental concerns, brands are changing the plastics that they use, and revenues from Biome Bioplastics are accelerating, particularly in the US market.
Biome Bioplastics is building its short and longer-term product line and its customer base and the Board believes that its outlook for 2021 and beyond shows excellent potential with an increased diversity of customers. There is now an opportunity for significant further growth of the Biome Bioplastics business via the deployment of additional resources.
The Company therefore proposes to raise gross proceeds of £1.1 million via the Fundraise to secure the exciting bioplastics growth opportunity.
The bioplastics market and opportunity
Over the last year, the ‘plastics problem’ has remained in the global spotlight, and the enormity of the issues associated with oil-based plastic waste continues to garner attention. It has become evident that recycling alone is not the solution, and although multi-faceted, the crux of the issue often lies with the molecular structure of the materials themselves.
Bio-based and biodegradable/compostable plastics are being seen as an important part of the solution to the oil-based persistent plastics problem, with bio-based materials made from renewable biomass being replacements for fossil-oil based materials. Studies show that bio-based materials can play a role in reducing carbon emissions from the manufacture and the lifecycle of plastic products.
Compostable plastics also have a role to play, particularly in food packaging, in terms of both collection of food waste and thus diverting food waste away from landfill and in providing a suitable end-of-life for such materials via composting (organic recycling). The UK Government is in the process of mandating universal food waste collection by 2023, indicating that there is a developing pathway to disposal of compostable plastics.
The global market for bioplastics is predicted to grow by around a 20 per cent compound annual growth rate over the next five years, and the Bio-based and Biodegradable Industries Association (BBIA) has reported that the UK market for bioplastics has doubled since 2017. Although there are a number of factors that prevent ubiquitous immediate adoption of bioplastics, the Board has identified a variety of fast-growing, non-commodity niches in which Biome Bioplastics can prosper.
The Biome Bioplastics Business
Biome Bioplastics develops and manufactures bioplastic compounds, using bio-based/biodegradable polymers, natural materials and other additives. Biome Bioplastics deploys a low capital expenditure manufacturing model, using contracted manufacturing facilities in Europe/the US to make its finished products at scale. This allows for a rapid scale-up in the production of new materials close to their point of use.
Biome Bioplastics has a strong focus on the US market where brand interest, volumes of scale and supportive industrial composting infrastructure are already in place. Biome Bioplastics currently has a pipeline of approximately 20 key development projects underway with a customer group that ranges from mid-size to multi-national companies.
Biome Bioplastics has gained significant pace to its growth in the last two years, as brands have increasingly selected its compostable bio-based materials. This momentum has continued to grow in 2020, despite the current COVID-19 crisis, with H1 2020 showing 71 per cent. revenue growth relative to the comparable period in 2019.
A number of projects launched in 2019 and 2020 have contributed significantly to Biome Bioplastics’ growth, which are described below:
• a contract for a new material for a coffee pod used in the US coffee market that is heat stable. Revenues started in Q3 2019 as anticipated and are now consistently ahead of the Board’s earlier expectations.
• a new material for a single serve nutrition pod being manufactured in Switzerland and launched in the US market. Revenues started in Q2 2019 and were expected to step-up in FY 2020. However, the closure of gyms resulting from the COVID-19 pandemic has stopped progress in the last six months. The Board understands that the end customer is refocusing to online sales.
• a contract for a new material for disposable cutlery for a customer in the US market. Revenues began to accelerate in late 2019, were paused during the US COVID-19 restaurant shutdowns of spring 2020 and are now gaining traction again. This material has broader market applicability.
• existing materials manufactured in Germany are being deployed in a number of plastic film products for a US customer. Revenues commenced in Q2 2019 and these materials have made consistent progress with a broader set of customers.
In addition, the Board has a clear growth trajectory for Biome Bioplastics in 2021 that rests, in the most part, on substantial extensions of positions with existing customers. Key projects for 2021 and beyond include:
• Continued growth from existing customers with existing products, especially flexible film in both industrial and particularly home compostable formats, for the North American market.
• Filtration mesh: the Company envisages growth with a second end-customer with a material that has been proven with an existing customer over the last three years. Implementation of this project is underway.
• Coffee pod material: the Company launched a project for a heat stable material for coffee pods within the US at the end of 2019. Commercial sales of this product are gaining momentum.
• Packaging film: the Company is working on seven new customer projects that focus on the conversion of flexible packaging to compostable formats. Six of these projects are for the North American Market.
Biome Bioplastics continues its extensive Research and Development on the production of its novel bio-based and biodegradable hetero-aromatic polyesters, in order to further differentiate its product range. Over the last seven years, Biome Bioplastics has coordinated over £6 million of research and development funding in conjunction with leading universities, in pursuit of bringing novel bio-based polyesters to market. In August 2020, Biome Bioplastics was awarded £253,000 from the UK Government’s Innovate UK organisation, to support a collaborative project with the University of Nottingham to scale-up its novel materials over the next 18 months. The Board believes that Biome Bioplastics’ development pipeline represents an opportunity to further differentiate the Group’s product offering in the medium-term, based on proprietary technology.
The Stanelco RF Technologies market and opportunity
Stanelco RF Technologies is a specialist Original Equipment Manufacturer (OEM) engineering business that develops radio frequency (RF) welding, heating and furnace technology-based equipment, which uses the heating effect of electromagnetic waves to heat and weld materials. The business operates in a variety of international markets, with India and China as markets of scale. The business has an international market-leading position in the furnace market for fibre-optic cable production. These furnaces are an important part of the fifth generation of cellular mobile data technology (5G) rollout and the demand for the infrastructure underpinning the global data capacity of the internet.
Stanelco RF Technologies saw a significant expansion in the capacity of its customers during increased fibre-optic rollout in 2018 and 2019. This was followed by a softening in demand as Fibre to the Premises (FTTP) and 5G roll-outs have been delayed as a result of overcapacity compounded by geopolitical events. In addition, COVID-19 has affected demand, as telecommunication companies have slowed their fibre-optic deployment. Whilst COVID-19 is expected to enhance fibre-optic infrastructure requirements in the longer-term, there is currently limited visibility on the timing of such investment.
The Group continues to make a concerted effort to increase Stanelco RF Technologies’ geographic footprint and range of applications and Stanelco RF Technologies already benefits from recurring revenue from power generation, medical and general industrial markets, primarily in the UK.
The Board recognises that further diversified revenues will take time to develop and are unlikely to be of the scale enjoyed in the fibre-optic furnace market, and as such, considers that Stanelco RF Technologies’ revenues will be modest in the foreseeable future. The Group’s current approach is to keep Stanelco RF Technologies’ costs and cashflows tightly controlled during this time of limited demand.
3. Current trading and prospects
On 24 September 2020, the Company announced its unaudited interim financial results for the period ended 30 June 2020. Group revenues for the interim period were £2.5 million (H1 2019: £3.4 million). The Biome Bioplastics division continued its strong growth trajectory despite the impact of COVID-19, delivering an increase in revenues of 71% on the comparable period, and has now become the principal revenue generator for the Group. Revenues in the Stanelco RF Technologies division sharply reduced by 82% due to weak market demand and the impact of COVID-19. Vigorous cost cutting measures reduced administrative expenses in the interim period to £1.7 million (H1 2019: £2.2 million). The Group recorded a loss before interest, depreciation, amortisation and share option charges for the six months to 30 June 2020 of £0.5 million (H1 2019: £0.2 million loss).
In 2018 the Board adopted ambitious Key Performance Indicators (KPIs) for the Group’s 2018 – 2020 objective cycle, which will now be adjusted and extended to the end of 2023 reflecting the continued progress of the Biome Bioplastics division, the headwinds facing the Stanelco RF technologies division and the impact of the COVID-19 virus to date. Further details of the Board’s adjusted KPIs can be found in the Company’s unaudited interim financial results announcement for the period ended 30 June 2020.
Revenues in the Biome Bioplastics division continued to grow during the first half of 2020, reaching £2.1 million for the period (H1 2019: £1.2 million). Revenue in the second quarter of 2020 was £1.2 million and represented a new record for the Biome Bioplastics division, despite the disruption caused by the pandemic. Despite the lockdown and supply chain constraints in both Europe and the US, the Biome Bioplastics division’s workflows proved resilient and production output met customer requirements throughout the first half.
The Biome Bioplastics division’s orderbook remains strong with a range of products with a more predictable and improving growth profile, particularly in the US market. An encouraging list of prospects for 2021 has enabled the Board to form its expectations of continued vigorous growth in this division for 2021.
Stanelco RF Technologies
Revenues for the first half of 2020 in the Stanelco RF technologies division were £0.4 million (H1 2019: £2.2 million). The expectation is that, in time, the fibre optic market will benefit from the pandemic through the enhanced pace of global digitisation required to meet the demands of, for example, increased home working and the 5G roll-out. However, in the short term, demand is likely to remain weak. The Stanelco RF technologies division also provides induction heating and welding equipment to various end markets in the UK and continental Europe. Activity in these markets in the second quarter of 2020 was very weak, with many facilities closed and customers deferring the purchase of capital goods. The Stanelco RF technologies division has accordingly reduced costs and cash outflows where possible as well as reviewing possible alternative markets for its technologies.
The Board is pleased that in the last few weeks, the enquiry level has increased and there have been some small contract wins, albeit overall demand levels remain subdued.
Looking further forward, the Board believes that the Stanelco RF technologies division’s prospects for 2021 will remain influenced by continued overcapacity in the fibre optic cable market and COVID-19 related uncertainties around demand and capital expenditure in the industrial markets that the division serves.
4. Reasons for the Fundraise and use of proceeds
Revenues from Biome Bioplastics are already growing at pace and the Board believes that its outlook for 2021 and beyond shows excellent potential with an increased diversity of customers.
To maintain and build on this growth, the expected use of the net proceeds of the Fundraise is set out below:
|A. Growth capital needed to support revenue growth with existing customers and new bioplastics projects that are scaling up and will drive a significant increase in revenues over the next 18 months, and the associated working capital requirements.||FY 2021||£0.4 million|
|B. Maintaining an increased investment in sales activities, development and logistics spending to support and further accelerate the growth of the Biome Bioplastics business.||FY 2020 and FY 2021||£0.6 million|
* Net of the estimated costs associated with the Fundraise.
5. Details of the Fundraise and Admission
The Fundraise will result in the issue of a total of 916,667 New Ordinary Shares, representing, in aggregate, approximately 24.67 per cent. of the issued share capital of the Company as enlarged by the issue of the New Ordinary Shares.
Applications will be made to London Stock Exchange for the New Ordinary Shares to be admitted to trading on AIM and First Admission is expected to occur on 1 October 2020 in respect of the First Placing Shares and, subject to approval of the Resolutions, Second Admission is expected to occur on 14 October 2020 in respect of the Second Placing Shares. Admission of the Subscription Shares to trading on AIM is expected to occur on 11 December 2020, subject to, inter alia, First Admission, the passing of the Resolutions at the General Meeting and Second Admission.
The New Ordinary Shares, when issued and fully paid, will rank pari passu in all respects with the Existing Ordinary Shares and therefore will rank equally for all dividends or other distributions declared, made or paid after the admission of the New Ordinary Shares to trading on AIM.
Allenby Capital has entered into the Placing Agreement with the Company under which Allenby Capital has, on the terms and subject to the conditions set out therein (including Admission), undertaken to use its reasonable endeavours to procure subscribers for a total of 875,000 Placing Shares at the Issue Price. The Placing Agreement contains certain warranties and indemnities from the Company in favour of Allenby Capital. The Placing is not being underwritten by Allenby Capital or any other person.
The Placing is conditional, inter alia, upon First Admission in respect of the First Placing Shares and, First Admission having occurred, upon the passing of the Resolutions and Second Admission in respect of the Second Placing Shares and the Placing Agreement not being terminated prior to First Admission or Second Admission.
The First Placing is not conditional on the Second Placing. Therefore, should the Resolutions not be passed the Second Placing will not proceed, which will have an impact on the ability of the Group to pursue its growth strategy.
Neither the First Placing nor the Second Placing are conditional on the Subscription. The Subscription is conditional on First Admission, the passing of the Resolutions, and Second Admission and the admission of the Subscription Shares to trading on AIM.
6. Significant shareholder and management participations
Details of the subscriptions by certain of the Directors in the Placing at the Issue Price and their resultant shareholdings immediately following the admission of the New Ordinary Shares to trading on AIM, are as follows:
|Name||Second Placing Shares being subscribed||Value of the subscriptions at the Issue Price||Ordinary Shares held following completion of the Fundraise||Percentage of Enlarged Share Capital|
* John Standen’s participation in the Placing includes 6,250 Second Placing Shares subscribed for by his wife, Mrs K M Standen.
Sally Morley, the Managing Director of Biome Bioplastics, who is a person discharging managerial responsibilities, has subscribed in the Placing at the Issue Price and her resultant shareholding on Second Admission is as follows:
|Name||Second Placing Shares being subscribed||Value of the subscriptions at the Issue Price||Ordinary Shares held following completion of the Fundraise||Percentage of Enlarged Share Capital|
Assuming completion of the Fundraise, the Company is aware of the following persons that will be interested in three per cent. or more of the Enlarged Share Capital:
|Name||Ordinary Shares currently held||Ordinary Shares held following completion of the Fundraise||Percentage of Enlarged Share Capital|
|Mr V Pereira*||600,689||667,356||17.96%|
|Mr JM Rushton-Turner||364,717||406,384||10.94%|
*Mr V Pereira’s holding includes 82,416 Ordinary Shares held by his wife, Mrs G Pereira.
7. General Meeting
A notice convening a General Meeting of the Company, to be held at Starpol Technology Centre, North Road, Marchwood, Southampton, Hampshire SO40 4BL at 2.30 p.m. on 12 October 2020 is set out at the end of this Circular. At the General Meeting, the following Resolutions will be proposed:
1. Resolution numbered 1 is proposed as an ordinary resolution to grant authority to the Directors to allot Ordinary Shares up to an aggregate nominal amount of £32,983.50. This resolution will give the Directors sufficient authority to allot the Second Placing Shares and the Subscription Shares; and
2. Resolution numbered 2 is proposed as a special resolution to dis-apply statutory pre-emption rights in respect of the allotment of up to 659,670 new Ordinary Shares for cash. This number represents 618,003 Second Placing Shares and the 41,667 Subscription Shares.
3. Resolution numbered 3 is proposed as an ordinary resolution to grant authority to the Directors to allot Ordinary Shares up to an aggregate nominal amount of £61,919.87, representing approximately one third of the nominal value of the issued ordinary share capital of the Company as enlarged by the Fundraise, renewing and replacing the authority granted at the Company’s annual general meeting. There are no treasury shares in issue in the Company as at the date of this letter. The Directors do not have any present intention of exercising the authorities conferred by this resolution but they consider it desirable that the specified amount of authorised but unissued share capital is available for issue so that they can more readily take advantage of possible opportunities. Unless revoked, varied or extended, this authority will expire at the conclusion of the next annual general meeting of the Company or the date falling 18 months from the passing of the resolution, whichever is the earlier.
4. Resolution numbered 4 is proposed as a special resolution to dis-apply statutory pre-emption rights in respect of the allotment of new Ordinary Shares for cash, up to a maximum nominal amount of £18,575.96. This amount represents approximately ten per cent of the nominal value of the issued ordinary share capital of the Company as enlarged by the Fundraise, renewing and replacing the authority granted at the Company’s annual general meeting. Unless revoked, varied or extended, this authority will expire at the conclusion of the next annual general meeting of the Company or 18 months after the passing of the resolution, whichever is the earlier.
Resolutions 1 and 3 will be proposed as ordinary resolutions and Resolutions 2 and 4 as special resolutions.
At the time of writing, the UK has in force governmental measures restricting physical public gatherings. In view of these measures and the overriding health and safety concerns, we are currently planning that the General Meeting (convened pursuant to the notice at the end of this circular) will be held as a closed meeting and convened with the minimum quorum of two shareholders present.
As a result, we regret that shareholders will not be permitted to attend the meeting in person and, in the interests of safety, anyone seeking to attend in person will be refused entry.
We will continue to monitor developments closely and if circumstances change such that physical attendance is possible, we will communicate such change through public announcement and publication on our website.
8. Action to be taken by Shareholders
The General Meeting will consist of the formal business set out in the Notice of General Meeting, and no trading update or other presentation will be given. Voting on the Resolutions will take place by way of a poll.
Shareholders will find enclosed with this document a Form of Proxy for use at the General Meeting. Shareholders are strongly encouraged to complete, sign and return the Form of Proxy in accordance with the instructions printed on it to Neville Registrars Limited, Neville House, Steelpark Road, Halesowen B62 8HD as soon as possible and, in any event, so as to arrive no later than 2.30 p.m. on 10 October 2020.
All shareholders are encouraged to vote by proxy in accordance with the instructions set out in the Notice of General Meeting. It is particularly important that shareholders vote by proxy as they will be unable to attend in person. All shareholders are encouraged to appoint the Chairman of the meeting as their proxy rather than a named person, as they will not be permitted to attend the physical meeting.
Instructions for voting by proxy through CREST are set out in paragraphs 9 to 11 of the notes to the notice of General Meeting.
In the case of non-registered Shareholders who receive these materials through their broker or other intermediary, the Shareholder should complete and send a letter of direction in accordance with the instructions provided by their broker or other intermediary.
In order for the Second Placing and the Subscription to proceed, Shareholders will need to approve certain of the Resolutions set out in the Notice of General Meeting. If Resolutions 1 and 2 are not passed at the General Meeting, the Second Placing and the Subscription will not proceed which will have an impact on the ability of the Group to pursue its growth strategy. Accordingly, it is important that Shareholders vote in favour of the Resolutions.
9. Irrevocable Undertakings
The Company has received irrevocable undertakings from certain of its Shareholders to vote in favour of the resolutions to effect the Fundraise at the General Meeting in respect of a total of 667,817 Ordinary Shares, being 23.86 per cent. of the Existing Ordinary Shares, and 21.86 per cent. of the Company’s issued share capital immediately following First Admission.
10. Directors’ Recommendation
The Board of Biome considers the Fundraise to be in the best interests of the Company and its shareholders as a whole and therefore the Directors unanimously recommend that shareholders vote in favour of the Resolutions as they intend to do in respect of their own shareholdings (and the shareholdings of their connected parties) of, in aggregate, 93,932 Ordinary Shares (representing approximately 3.36 per cent. of the Company’s existing issued share capital).
|Issue Price||120 pence|
|Number of Existing Ordinary Shares||2,798,525|
|Total number of New Ordinary Shares||916,667|
|Number of First Placing Shares||256,997|
|Number of Second Placing Shares||618,003|
|Number of Subscription Shares||41,667|
|Enlarged Share Capital following the Fundraise||3,715,192|
|Percentage of the Enlarged Share Capital comprised by the New Ordinary Shares||24.67 per cent.|
|Estimated gross proceeds of the Fundraise||£1.1 million|
|Estimated expenses of Fundraise||£0.1 million|
|Estimated net proceeds of the Fundraise||£1 million|