London Stock Exchange welcomes Novacyt Group to Aim
London Stock Exchange welcomed Novacyt ("Novacyt" or the "Company") to the start of dealings in its shares and admission to the AIM market, today, 1 November 2017, under the ticker "NCYT" (ISIN: FR0010397232).
The Novacyt Group is a rapidly growing, international diagnostics group generating revenues from cancer, haematology, serology and infectious disease products and services. Through its proprietary technology platform, NOVAPrep®, and molecular diagnostic platform, genesig®, Novacyt is able to provide an extensive range of diagnostic products across a broad international distributor network and to major corporate partners. The Company has a strong track record of growth, delivering 56% CAGR between 2014 and 2016.
Summary of the Fundraising
- €9.7 million (before expenses) raised through the Fundraising
- The Fundraising consisted of €4.7 million of Placing Shares and €5.0 million of Subscription Shares, both at an issue price of 59.38 pence per Share (€0.66) (the “Issue Price”)
- The number of Ordinary Shares in issue on AIM Admission will be 37,664,341, giving the Company an anticipated market capitalisation of approximately £22.4 million at the Issue Price
Reasons for Admission and Use of Proceeds
Following the Company's acquisition of Primerdesign in May 2016, the Group has become a more UK-centric company, with clear growth plans. The Directors believe that the admission to AIM is an important step in the Company's development, providing access to a deeper potential pool of capital whilst raising its international and capital markets profiles.
The Company intends to use the money raised to accelerate its organic growth strategy, specifically including:
- Investment in additional manufacturing capacity
- Expansion of the Group's commercial infrastructure
- Investment in R&D to obtain CE-IVD approval for selected Primerdesign's research-use-only (RUO) assays
In addition, the proceeds will be used for general working capital purposes, including the ongoing servicing of existing debt and to satisfy contingent considerations in relation to the acquisition of Primerdesign.
Graham Mullis, Group CEO of Novacyt, commented:
"The successful placing and admission of our shares to trading on AIM are important milestones for Novacyt and marks the first healthcare company with a dual-listing on Euronext Growth Paris and AIM. As an international company with a material presence in the UK and France, we have a track record of delivering high growth. These funds will be invested to accelerate our organic growth across three core businesses, as well as providing a well-capitalised balance sheet.
"Novacyt has a clear strategy focused on organic growth of existing products, R&D and acquisitions, with the target of achieving global leadership within certain sectors of the oncology and infectious disease clinical diagnostic markets. Our considerable experience, expertise and commercial infrastructure, combined with the specific growth opportunities we have identified, positions us well in the large, fast growing but fragmented diagnostics market.
"I would like to thank our new and existing shareholders for their support. We are confident we have the right ingredients to further build a scalable and sustainable diagnostics business, becoming a leader in developing new products for the infectious disease and oncology testing markets."
Stifel Nicolaus Europe Limited ("Stifel") and WG Partners acted as Joint Brokers on the Fundraising. Stifel is the Company's ongoing Nominated Advisor.