Plant Health Care PLC (LON:PHC) has raised roughly US$10.0mln through a placing and subscription to help accelerate the development and launch of its existing biological product pipeline and to fund its entry into new European markets.
In total, 50.4mln shares were placed at 14p a pop. The share issue was substantially oversubscribed.
Plant Health Care, a provider of novel patent-protected biological products to global agricultural markets, said it believes that agriculture is changing and there is a move to increased sustainability with global demand for biological solutions growing at 16% per year.
The net proceeds of the fundraising will be used to invest in PREtec product development and accelerate new product launches; reinforce the team, support accelerated growth and new market entry including into Europe and to strengthen the balance sheet.
The company’s first commercial launch of a PREtec product is expected to be the launch of Saori during the second half of this year. Plant Health Care has started commercial talks with leading crop protection companies in Brazil to independently confirm Saori’s performance.
The company noted that Europe, accounting for about 46% of the global market for biological products in agriculture, represents an opportunity for it as the area is underrepresented in its existing sales.
Plant Health Care intends to pursue regulatory approval for its products as well as to consider possible alliances, joint ventures or mergers and acquisitions with European companies with complementary market access, customers and technology.
Shares in Plant Health Care were up 0.3% at 16p in afternoon trading.