Itaconix unveils fundraising plans to boost portfolio development

Itaconix PLC (LON:ITX) has announced plans to raise at least £1.12mln in order to help fund the commercial development of its core products. In an announcement following Tuesday’s close, the polymer specialist said it plans to raise the funds through a placing of new shares with certain existing and new institutional and other investors and a subscription with certain US investors at a price of 1.1p each, a 15% discount to its Tuesday closing price. READ: Itaconix receives loan under US small business scheme The company said it also intends to make an invitation to certain eligible US participants in a further issue of new equity in the company through an additional subscription of new shares at the same price. Itaconix said the proceeds of the placing will be used to fund costs associated with portfolio development at least until the third quarter of the year ending December 31, 2020, as well as for general working capital purposes. The company said the fundraising will open with immediate effect and it had the right to increase the size of the fundraising depending on demand levels. The firm added that it had continued to make commercial progress in the first five months of 2020, with revenue in the period at US$900,000, 91% higher year-on-year.