SkinBioTherapeutics (LON: SBTX) has launched a £2.5m placing and a retail offer of up to £1m via REX at 16p a share. The share price had fallen to 15.92p.
The AIM-quoted microbiome-based skin treatments developer is using the cash to finance the roll-out of psoriasis treatment AxisBiotix-PS around the world, as well as funding development of other products, including an acne food supplement. There is also talk of potential acquisitions.
There are main areas of focus are skin conditions, medical skin care, infection control and pharmaceuticals. The partnership with Croda is expected to lead to a product launch in 2023, which would generate revenues in the next financial year.
In the year to June 2022, there were initial revenues of £75,000, which was a disappointment. One year ago, it was hoped that the figure was going to be £1.2m. The AxisBiotix-PS is being sold directly to consumers. It is being marketed in the UK and US and there are plans for Spain and Italy. Management believes that additional marketing spending could accelerate growth.
There was £1.8m in the bank at the end of June 2022. That was after a £2.7m cash outflow.
A study for the acne food supplement should start in 2023 and a decision will be made on how this product should be sold.
The REX retail offer closes on 20 December.