Cardiff-based rapid test diagnostics company, BBI holdings has raised £5m by means of an institutional placing on AIM. Barclays Ventures is a lead investor in BBI and backed its management buyout in November 2000 along with Baring English Growth Fund and Northern Venture Managers.
Following its admission to AIM BBI has 21,329,139 ordinary shares in issue, valuing the company at £10m at the placing price of 47 pence per share. Net proceeds receivable by the company will be £4.45m. The funds raised will repay existing debt and finance future growth through investment in internal development of intellectual property or through suitable acquisitions.
The company has issued £3.5m of loan notes to its investors and the original owner of which £3.1m was repaid on admission to AIM and the remaining £400,000 together with around £1.297m in respect of outstanding interest and repayment premium was converted into 3,610,842 ordinary shares at the placing price on admission. The investors retain 34.6% of the company.
Julian Baines, BBI managing director, said: “The success of this flotation is due to a number of factors that have come together to make BBI a compelling investment opportunity?we have had exceptional support form our investors (Barclays Ventures, Baring English Growth Fund and Northern Venture Managers) from the time we led the management buyout in November 2000. the money raised and the greater visibility that the company will have by listing on AIM will help us find new products for new markets with new industry partners.”