Itaconix completes oversubscribed fundraising to boost portfolio development

Itaconix PLC (LON:ITX) has closed what it said was an oversubscribed fundraising of at least £1.12mln in order to help fund the commercial development of its core products. Announcing the fundraising after yesterday'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 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. On Wednesday morning, the company said the fundraising was oversubscribed and had now closed. Shares in Itaconix were 3.1% higher at 1.3p in early deals on Wednesday. --Adds close of fundraising details and updates share price--