Belluscura shares surged in afternoon trading on Tuesday as the portable oxygen concentrator company released a flurry of announcements related to bolstering its manufacturing capabilities.
Belluscura has recently unveiled two substantial developments in the distribution and sales of their portable oxygen concentrators which could add up to $70m in revenue for Belluscura.
This was increased to $85m today after Belluscura announced further orders for their DISCOV-R™ portable oxygen concentrators. The company said orders now sat around $30m.
Belluscura has inked a royalty agreement with Chinese partners that could be worth around $55m over ten years.
Today’s series of announcements revealed a funding package totalling in the region of £8m to be allocated to scaling up the company’s manufacturing and sales operations in light of a step change in order demand.
The £8m funding package will be beneficial for shareholders as it avoids a large discounted placing that would erode shareholder value through dilution.
The package is comprised of three elements; the acquisition of TMT Acquisitions PLC satisfied by new shares in Belluscura, a £0.6m equity placing at 32p, and the issuing of £2.7m in 10% convertible loan notes.
TMT Acquisitions has £4.7m in cash which Belluscura will receive through the acquisition of the company in return for newly issued Belluscura shares. The price paid by Belluscura represents a 24.7% premium to TMT’s most recent closing price. TMT has no trading activities and the board will step down on the completion of the deal.
Nigel Wray, an existing Belluscura shareholder, will participate in the convertible loan note issue.
Belluscura shares jumped 20% to 36p as of 2.41pm in London.
Tekcapital, a major Belluscura shareholder, saw their shares tick higher in the immediate reaction to the news.