Tekcapital issued an update on portfolio company Belluscura on Thursday and hailed ‘transformative’ developments at the portable oxygen concentrator unit manufacturer.
Belluscura has achieved a step change in orders with a potential $30m demand for DISCOV-R units. An additional licensing agreement with their Chinese partner could be worth $55m over ten years.
Dr Clifford Gross, CEO of Tekcapital, commented on Belluscura’s recent progress:
“We are very pleased to see the significant progress of Belluscura with enhancements to their balance sheet, regulatory approvals, personnel, and sales pipeline. Together we view these recent developments as transformative for Belluscura.”
To facilitate the manufacturing and distribution operations required by the burgeoning demand for their products, Belluscura has undertaken a fund programme which potentially totals in the region of £8m.
The fund packing comprises a conditional equity and convertible loan note issue, and a share-for-share takeover of TMT Acquisition. TMT Acquisition has £4.7m cash on the balance sheet, and the 10% convertible loan note issue will attract around £2.7m. The equity placing was just £600,000.
Belluscura shares are up around 30% since before the funding plans were announced earlier this week. Tekcapital has a circa 11% stake in Belluscura.