SINGAPORE (Mar 16): Cancer solution specialist Biolidics is raising $3.13 million from a share placement exercise mainly to expand the group’s businesses.

Under the terms of the share placement, the group will issue about 17.9 million new ordinary shares at 17.5 cents per share, which represents about 7.3% discount to its volume weighted average price of 18.9 cents per share as at the close of Mar 13.

Immediately after completion of the placement and assuming that no further shares are issued prior thereto, the group’s issued and paid-up share capital will increase to about 260.4 million shares, compared to 242.5 million shares currently.

The placement shares represent approximately 7.36% of the existing issued and paid-up share capital of the company and will represent approximately 6.86% of the enlarged share capital.

The group intends to use 51.5% or $1.6 million of the placement net proceeds to expand its presence in existing market, new market segments, and through establishing new sales channels; 25.6% or $0.8 million will be used to expansion of the group’s businesses through investments, M&A, JVs and/or collaborations with third parties; and about 23.0% or $0.7 million will be used for general working capital purposes.

As at 2.15pm, shares in Biolidics are trading 3.4% lower at 20 cents.