Stock Market News
Deltex Medical announces placing and open offer
22-05-2014 14:34
Add To Google +1 | Tweet |
Deltex Medical Group has announced plans to raise up to 4.7m pounds from a placing and open offer and warned first-half probe revenues would be hit by NHS destocking.
The medical devices group aims to drum up £4m at 11p each from a placing, together with an open offer for existing shareholders at the same price to raise a further £1m.
The net proceeds, which are expected to be between £3.7m and £4.7m, will fund an intended expansion of the company's sales and clinical education team in the US to support expansion resulting from demand received from ten new hospital customers in the States.
Deltex said: "The high quality of the leads received since the start of 2014 have exceeded the company's expectations and indicate a growing recognition in the US of the patient outcome and cost saving benefits of implementing evidence based approaches to fluid management."
The intention is to recruit two further salespeople and three additional clinical trainers, as well as invest in e-learning and customer relationship management systems. The total cost of this investment in US expansion is estimated at £1.7m.
It plans to spend a further £0.9m on supporting a number of operational projects aimed at improving margins, supporting expansion and increasing the breadth of application of its products, it explained, as well as adding to working capital.
The group also reported "satisfactory" progress in each of its UK, US and International market segments, but said that as a result of NHS de-stocking it expects its 2014 UK surgical probe growth to come through in the second half of the year with a relatively flat first half of the year.
The share price fell 14.55% to 11.75p by 14:43.
NR
The medical devices group aims to drum up £4m at 11p each from a placing, together with an open offer for existing shareholders at the same price to raise a further £1m.
The net proceeds, which are expected to be between £3.7m and £4.7m, will fund an intended expansion of the company's sales and clinical education team in the US to support expansion resulting from demand received from ten new hospital customers in the States.
Deltex said: "The high quality of the leads received since the start of 2014 have exceeded the company's expectations and indicate a growing recognition in the US of the patient outcome and cost saving benefits of implementing evidence based approaches to fluid management."
The intention is to recruit two further salespeople and three additional clinical trainers, as well as invest in e-learning and customer relationship management systems. The total cost of this investment in US expansion is estimated at £1.7m.
It plans to spend a further £0.9m on supporting a number of operational projects aimed at improving margins, supporting expansion and increasing the breadth of application of its products, it explained, as well as adding to working capital.
The group also reported "satisfactory" progress in each of its UK, US and International market segments, but said that as a result of NHS de-stocking it expects its 2014 UK surgical probe growth to come through in the second half of the year with a relatively flat first half of the year.
The share price fell 14.55% to 11.75p by 14:43.
NR
Related share prices |
---|
Deltex Medical Group (DEMG) share price |
Stock News is provided by Digital Look Corporate Solutions from Sharecast news. Please read the terms and conditions of useage of this data. Republication or redistribution of content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Digital Look Ltd.
Get a free widget for your website with our latest headlines.
You can now add our live prices and new headlines to your website.The news widget features quotes for Oil prices, spot Gold price and Indices plus a choice of news channel for healines.
Top Shares pages
- Share price quotes
- Share charts
- Share watch list
- Company Results Calendar
- Top Large UK Shares
- UK Market Sectors
- Stock market news
- Company news
- Share tips
- A-Z company search
More share features
POPULAR Share Prices
- Royal Mail share price
- Lloyds share price
- HSBC share price
- Barclays share price
- Prudential share price
- Santander share price
- RBS share price
- Diageo share price
- Standard Life Share Price
- BP share price
- Vodafone share price
- British Airways
- Centrica share price
- Tesco share price
- Taylor Wimpey Share Price
- National Grid
- GKP Share Price
- Marks and Spencer
- Rolls Royce
- Rio Tinto
- Morrisons Share Price
- Aviva Share Price
- LGO Share price
- Tullow Oil Share Price
- SXX Share Price
- Easyjet Share Price
- Next Share Price
- Thomas Cook Share Price
- SSE Share Price
- IAG Share Price
- Bat share price
- Monitise Share Price
- Kingfisher share price
- Dragon Oil share price
- UKOG share price
- SOLG share price