Deltex Medical Group PLC Share placing (6972L)

TIDMDEMG

RNS Number : 6972L

Deltex Medical Group PLC

21 July 2017

THIS ANNOUNCEMENT AND THE INFORMATION CONTAINED HEREIN IS RESTRICTED AND IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN, INTO OR FROM THE UNITED STATES OF AMERICA, CANADA, AUSTRALIA, JAPAN OR NEW ZEALAND OR INTO ANY OTHER JURISDICTION WHERE TO DO SO WOULD BREACH ANY APPLICABLE LAW OR REGULATION.

THIS ANNOUNCEMENT IS FOR INFORMATION PURPOSES ONLY AND DOES NOT CONSTITUTE OR CONTAIN ANY INVITATION, SOLICITATION, RECOMMATION, OFFER OR ADVICE TO ANY PERSON TO SUBSCRIBE FOR, OTHERWISE ACQUIRE OR DISPOSE OF ANY SECURITIES IN DELTEX MEDICAL GROUP PLC OR ANY OTHER ENTITY IN ANY JURISDICTION. NEITHER THIS ANNOUNCEMENT NOR THE FACT OF ITS DISTRIBUTION, SHALL FORM THE BASIS OF, OR BE RELIED ON IN CONNECTION WITH ANY INVESTMENT DECISION IN RESPECT OF DELTEX MEDICAL GROUP PLC.

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE MARKET ABUSE REGULATION EU 596/2014 ("MAR"). IN ADDITION, MARKET SOUNDINGS (AS DEFINED IN MAR) WERE TAKEN IN RESPECT OF THE MATTERS CONTAINED IN THIS ANNOUNCEMENT, WITH THE RESULT THAT CERTAIN PERSONS BECAME AWARE OF SUCH INSIDE INFORMATION AS PERMITTED BY MAR. THAT INSIDE INFORMATION IS SET OUT IN THIS ANNOUNCEMENT AND HAS BEEN DISCLOSED AS SOON AS POSSIBLE IN ACCORDANCE WITH PARAGRAPH 7 OF ARTICLE 17 OF MAR. UPON THE PUBLICATION OF THIS ANNOUNCEMENT, THE INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN AND SUCH PERSONS SHALL THEREFORE CEASE TO BE IN POSSESSION OF INSIDE INFORMATION IN RELATION TO THE COMPANY AND ITS SECURITIES.

21 July 2017

Deltex Medical Group plc

("Deltex Medical" or "the Company")

Share placing

Deltex Medical Group plc (AIM: DEMG), the global leader in Oesophageal Doppler Monitoring ("ODM"), today announces that it has raised GBP550,000 by means of a placing of 16,296,296 new Ordinary shares of 1p each in the Company ("Ordinary Shares") (the "Placing") with existing and new private shareholders.

Highlights

-- The Placing of 16,296,296 new Ordinary Shares at a price of 3.375 pence per share, a discount of 10% from the closing mid-market price on 20 July, raising GBP550,000

   --      The Placing proceeds will be applied to working capital 

-- The Company released today a trading update for the six months ended 30 June 2017 showing a return to growth with revenues 7% ahead of the first half of 2016

-- In the last year, the Company has significantly reduced its rate of cash consumption and enters the second half of the year with traction in export markets driving overall sales growth, higher margins and lower costs

-- The Company is also positioned for incremental returns from investments made or substantially complete in new product development. Two new products were released in the first half of 2017.

Application will be made for the 16,296,296 new Ordinary Shares to be admitted to trading on AIM. The new Ordinary Shares will rank pari passu with the existing issued shares of the Company and dealings are expected to commence on 27 July 2017.

Upon Admission, the 16,296,296 new Ordinary Shares will represent 5% of the Company's enlarged issued share capital, being 313,115,807 Ordinary Shares (the "Enlarged Issued Share Capital") and the Company does not hold any shares in treasury.

This figure may be used by shareholders as the denominator for 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 and Transparency Rules.

Turner Pope Investments (TPI) Ltd ("TPI") acted as placing agent for the Placing and will be appointed as Joint Broker to the Company on admission of the new Ordinary Shares to trading on AIM.

Confirmation of Director's shareholdings

Nigel Keen, Chairman, (or interests associated with him) has subscribed for 1,629,630 new Ordinary Shares.

Nigel Keen's beneficial interests, following this subscription is as follows:

 
                        Number of 
                         Ordinary    Shareholding     % of Enlarged 
                Shares subscribed       following      Issued Share 
 Director                     for    Subscription           Capital 
------------  -------------------  --------------  ---------------- 
 Nigel Keen             1,629,630      27,823,410              8.89 
------------  -------------------  --------------  ---------------- 
 

Deltex Medical's Chairman, Nigel Keen, commented:

"This fundraising will provide the Company with additional working capital as it moves to the operating cash break-even point.

Over the last year, the Company has made substantial progress towards moving the business through the operating cash break-even point. Sales traction in the USA and other export markets have pulled the Company back into growth after a challenging period in the UK market. We are benefiting from investments made over the last three years in manufacturing efficiencies, US expansion and new product development.

We are positioned to benefit further going forward from substantially complete investments in further new product developments which will complete our transition from a single technology business to a provider of high quality, multi-technology platforms."

Notification and public disclosure of transactions by persons discharging managerial responsibilities and persons closely associated with them.

The following notifications are made in accordance with Article 19 of the EU Market Abuse Regulation

 
 1     Details of the person discharging managerial 
        responsibilities / person closely associated 
----  ----------------------------------------------------------------- 
 a)    Name                          Nigel Keen 
----  ----------------------------  ----------------------------------- 
 2     Reason for the notification 
----  ----------------------------------------------------------------- 
 a)    Position/status               Chairman 
----  ----------------------------  ----------------------------------- 
 b)    Initial notification          Initial 
        /Amendment 
----  ----------------------------  ----------------------------------- 
 3     Details of the issuer, emission allowance 
        market participant, auction platform, auctioneer 
        or auction monitor 
----  ----------------------------------------------------------------- 
 a)    Name                          Deltex Medical Group plc 
----  ----------------------------  ----------------------------------- 
 b)    LEI                           N/A 
----  ----------------------------  ----------------------------------- 
 4     Details of the transaction(s): section to 
        be repeated for (i) each type of instrument; 
        (ii) each type of transaction; (iii) each 
        date; and (iv) each place where transactions 
        have been conducted 
----  ----------------------------------------------------------------- 
 a)    Description of                Ordinary shares of 1p each 
        the financial instrument,     in Deltex Medical Group 
        type of instrument            plc 
 
        Identification                Identification code (ISIN) 
        code                          for Deltex Medical Group 
                                      plc ordinary shares: GB0059337583 
----  ----------------------------  ----------------------------------- 
 b)    Nature of the transaction      Share subscription 
----  ----------------------------  ----------------------------------- 
 c)    Price(s) and volume(s)          Price(s)   Volume(s) 
                                       ---------  ---------- 
                                        3.375p     1,629,630 
                                       ---------  ---------- 
----  ----------------------------  ----------------------------------- 
 d)    Aggregated information 
   - Aggregated volume                1,629,630 
   - Price                             3.375p 
 ---------------------------------  ----------------------------------- 
 e)    Date of the transaction       21 July 2017 
----  ----------------------------  ----------------------------------- 
 f)    Place of the transaction      London Stock Exchange, 
                                      AIM Market (XLON) 
----  ----------------------------  ----------------------------------- 
 

For further information, please contact:-

 
 Deltex Medical Group          01243 774 837 
  plc                           [e-mail] 
 Nigel Keen, Chairman 
 Ewan Phillips, Chief 
  Executive 
 Jonathan Shaw, Group 
  Finance Director 
 
 Nominated Adviser & 
  Broker 
 Arden Partners plc            020 7614 5900 
 Chris Hardie 
 Ciaran Walsh 
 
 Financial Public Relations 
 IFC Advisory Ltd              0203 053 8671 
 Tim Metcalfe 
  Graham Herring 
  Heather Armstrong 
 
 
 

Notes for Editors

Deltex Medical manufactures and markets haemodynamic monitoring technologies. Deltex Medical's proprietary ODM is the only technology to measure blood flow in the central circulation in real time. Minimally invasive, easy to set up and quick to focus, the technology generates a low-frequency ultrasound signal, which is highly sensitive to changes in flow and measures them immediately. Deltex has been the only company in the enhanced haemodynamic space to build a robust and credible evidence base proving the clinical and economic benefits of its core technology, ODM which is proven to reduce complications suffered by patients after surgery and save hospitals the costs of treating those complications.

Deltex Medical's CardioQ-ODM+ platform also now provides clinicians with two further advanced haemodynamic monitoring technologies. High Definition Impedance Cardiography is an entirely non-invasive monitoring technology which creates an electrical field across the chest and measures the disruption to this field when the heart pumps blood. Pulse Pressure Waveform Analysis uses peripheral blood pressure signal analysis to give doctors information on changes in the circulation and is particularly suited to monitoring lower risk or haemodynamically stable patients.

Company goal

Haemodynamic management is now becoming widely accepted as an important major new medical modality. Consequently, the Company's focus is on maximising value from the opportunities presented as enhanced haemodynamic management is adopted into routine clinical practice around the world. The Company aims to provide clinicians with a single platform, a 'haemodynamic workstation', which offers them a range of technologies from simple to sophisticated to be deployed according to the patient's condition and skill and expertise of the user. Doing this will enable the Company to partner healthcare providers to support modern haemodynamic management across the whole hospital.

The Company is currently in the implementation phase of achieving this goal in a number of territories worldwide, operating directly in the UK, USA, Spain and Canada and through distribution arrangements in a further 30 countries.

There are over 3,400 monitors installed in hospitals around the world and around 700,000 patients have been treated to date using Deltex Medical's single patient disposable products.

This information is provided by RNS

The company news service from the London Stock Exchange

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