REG - RUA Life Sciences - Result of Placing and Subscription

Rua Life SciencesAnnouncement

01/12/2023 07:00

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RNS Number : 3079V  RUA Life Sciences PLC  01 December 2023

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IMPORTANT NOTICE AT THE END OF THIS ANNOUNCEMENT.

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF THE MARKET
ABUSE REGULATION (EU) 596/2014 WHICH FORMS PART OF UK LAW BY VIRTUE OF THE
EUROPEAN UNION (WITHDRAWAL) ACT 2018 ("UK MAR"). IN ADDITION, MARKET SOUNDINGS
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INSIDE INFORMATION.

 

 

 

1 December 2023

RUA LIFE SCIENCES PLC

("RUA" or the "Company")

 

Result of Placing and Subscription

 

 

Further to the announcement made on 30 November 2023 regarding a proposed
placing, subscription and retail offer (the "Launch Announcement"), RUA Life
Sciences plc (AIM: RUA.L) is pleased to announce that, it has conditionally
raised gross proceeds of approximately £4.0 million (before expenses) under
the Placing. In total, 36,363,636 Placing Shares have been conditionally
placed at the Issue Price of 11 pence per share.

 

In addition, the Directors of the Company have confirmed their intention to
subscribe for an additional 727,272 Subscription Shares, raising a further
£80,000. As the Company is currently in a close period under MAR until the
publication of its interim results for the period ended 30 September 2023 (the
"Results"), the Directors are not permitted to enter into a subscription
agreement until after publication of these results (and subject to each not
being in possession of any other unpublished price sensitive information at
such time). Whilst it is expected that the Results will be published prior to
the expected date of Admission, in the event that the Directors are unable to
subscribe prior to that date (for whatever reason) the Company will apply for
admission of the Subscription Shares to trading on AIM separately and to take
effect following the admission of the Placing Shares and Retail Shares.

 

The Issue Price of 11 pence represents a discount of 43.6 per cent. to the
closing middle market price of 19.5 pence per Ordinary Shares on 29 November
2023, being the last business day prior to the announcement of the
Fundraising.

 

Cavendish Capital Markets Limited is acting as agent for and on behalf of the
Company in respect of the Placing. The Placing was undertaken through an
accelerated bookbuild process and was oversubscribed.

 

The Retail Offer was launched by way of a separate announcement at 5.51 p.m.
on 29 November 2023. A further announcement will be made on 8 December 2023
announcing the result of the Retail Offer.

 

 

Admission, Settlement and Dealings

Application will be made to the London Stock Exchange for admission of the New
Ordinary Shares to trading on AIM, being the market of that name operated by
the London Stock Exchange ("Admission").

It is expected that admission of the New Ordinary Shares will take place on or
around 8.00 a.m. on 19 December 2023 and that dealings in the New Ordinary
Shares on AIM will commence at the same time.

In addition to the passing of certain Resolutions at the General Meeting, the
Placing and Subscription, are conditional upon, inter alia, Admission becoming
effective. The Placing is not conditional on the Subscription being completed,
nor is any part of the Placing subject to clawback from the Retail Offer.

Following Admission of the Placing Shares and the Subscription Shares and
assuming the full take up of the Retail Offer, the Company will have
66,093,887 Ordinary Shares in issue. The New Ordinary Shares to be issued,
when issued, will be fully paid and will rank pari passu in all respects
with the Existing Ordinary Shares, including the right to receive all
dividends and other distributions declared, made or paid after the date of
issue.

A further announcement will be made in relation to total voting rights in the
Company's share capital following the allotment and issue of the New Ordinary
Shares.

The Circular, containing further details of the Fundraising and notice of the
General Meeting to be held on or around 11.00 a.m. on 18 December 2023 to,
inter alia, approve the resolutions required to implement the Fundraising, is
expected to be published and despatched to Shareholders today. Following its
publication, the Shareholder Circular will be available on the Group's website
at www.rualifesciences.com/investor-relations/reports-documents/.

For the purposes of UK MAR, the person responsible for arranging release of
this announcement on behalf of the Company is Bill Brown, Chairman.

Capitalised terms used in this announcement (this "Announcement") have the
meanings given to them in the Launch Announcement, unless the context provides
otherwise.

 

Bill Brown, Chairman of Rua Life Sciences plc, said:

"We are grateful for the support of our existing shareholders and new
investors in making this fundraise a success.  Following our change of
strategy, the funds will be targeted at accelerating growth within contract
manufacturing; strengthening the Company's balance sheet to aid the
commercialisation phase of its R&D projects within the Company's vascular
graft and HV leaflet composite; and enabling the Company to demonstrate value
across the portfolio.  The Company is as well positioned as it has ever been
with increased visibility on opportunities in the Contract manufacturing,
giving the board confidence that the Company is on track to meet its objective
of doubling the scale of the Contract Manufacture business in the medium term
and testing results of the Company's novel composite material for the creation
of heart valve leaflets that has produced results that have exceeded our
expectations and is attracting the interest of major players in the heart
valve industry."

 

For further information contact:

 

RUA Life Sciences

Bill Brown, Chairman
                      Tel: +44 (0)1294 317073

Caroline Stretton, Group Managing Director
 Tel: +44 (0)1294 317073

 

 

Cavendish Capital Markets
Limited                                  Tel:
+44 (0)20 7220 0500

(Nominated Adviser and Broker)

Giles Balleny/Dan Hodkinson (Corporate Finance)

Charlie Combe (ECM)

Michael Johnson (Sales)

 

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