Omega Diagnostics has confirmed it has "conditional investor support" for an equity fundraising at 5 pence per share, with plans being considered to raise around £5m through a share placing.
The Alva-based diagnostics company made a short stock exchange statement responding to online speculation about a potential fundraising opportunity.
It was considering a share placing to raise £5m, with an accompanying open offer to raise up to a further £2m.
“Any such fundraising would however be conditional upon certain other corporate actions currently being explored by the group and, accordingly, there is no certainty at this time that any such fundraise will proceed,” the statement noted.
It followed speculation last month that it was in discussions with “certain investors and shareholders” regarding the potential equity fundraising.
Omega has cash balances in excess of £2.5m and an undrawn overdraft facility of £2m.
Since today's announcement, the share price has dropped from 8.49 pence per share, to 7.15 pence.
Last month, Colin King announced he was resigning as chief executive with immediate effect and was replaced with Jag Grewal, who was a board member since June 2011 and has previously been managing director for the company's health and nutrition division.
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