Deltex Medical Group Shares Slump Following Capital Reorganisation
Deltex Medical Group's shares slumped by 82.5% following completion of a 1.9 million pound fundraising and capital reorganisation. The company aims to strengthen its balance sheet, implement an updated strategy and continue development of its noninva...
Troy D. Hanson
August 07, 2023
Shares of Deltex Medical Group slumped after the completion of a 1.9 million pound fundraising and capital reorganisation. As a result, shares were down 82.5% at 0.21 pence as of 0830 GMT.
Deltex Medical Group, a maker of medical devices, announced that it has strengthened its balance sheet through the fundraising and loan conversion. This capital will enable the company to implement its updated strategy, which includes a focus on recurring revenues and the promotion of its new monitor. Additionally, Deltex Medical Group will continue the development of its noninvasive suprasternal device.
The proceeds from the fundraising will also be used to support the company's cost-cutting and restructuring plan, outlined on July 14. In this plan, Deltex Medical Group placed 833 million new shares at a price of 0.20 pence per share, representing an 83% discount compared to the prior day's closing price of 1.20 pence.
Earlier in July, Deltex Medical Group had expressed its consideration of various options to raise additional funding to avoid potential administration.
Deltex Medical Group's shares were suspended in June, pending clarification of its financial position.
"With a strengthened balance sheet, the Board and management can now concentrate on driving the business forward and delivering growth," said Chief Executive Andy Mears.