Issue of Equity

RNS Number : 9889I

CareCapital Group plc

01 August 2012

 



 

1 August 2012

CARECAPITAL GROUP PLC

("CareCapital", "the Group" or "the Company")

Placing to Raise £0.52 million

Funds to be used to develop cancer treatment services and for general working capital

CareCapital (AIM: CARE) announces that it has conditionally placed 52,000,000 new ordinary shares in the Company ("the Placing Shares") at a price of 1.0 pence per Ordinary Share, raising gross proceeds of £0.52 million, from institutional and other investors, including Mike Sinclair, CareCapital's CEO.

The net proceeds of the Placing Shares are to be used to provide additional resources to develop the Group's businesses in the cancer diagnosis and treatment market and for general working capital purposes.

Application will be made for the Admission to AIM of the new ordinary shares issued and this is expected to become effective on 7 August 2012.  The Placing Shares, on Admission to AIM will represent approximately 24 per cent. of the Company's enlarged issued share capital, and will rank pari passu with the existing Ordinary Shares.

Following admission, the Company's enlarged issued share capital will comprise 216,410,368 Ordinary Shares with one voting right per share.  The total number of voting rights in the Company is therefore 216,410,368.

Mike Sinclair and his family's participation and resultant beneficial holding in the Company is as follows:

New shares acquired	Total holding in the enlarged share capital of the Company	% of enlarged issued share capital
20,000,000	51,670,121	23.9

The Placing Shares were placed with existing and new investors by Peterhouse Corporate Finance.

Commenting on the placing, Mike Sinclair, CEO of CareCapital, said, "Today's placing will provide the initial funding for our cancer treatment services businesses but in particular for our early stage breast cancer treatment company, Oncotherapy Resources."

For further information please visit www.carecapital.co.ukor contact:

Michael Sinclair, Chief Executive	Sandy Jamieson	Jon Levinson Lucy Williams	Simon Hudson Kelsey Traynor
CareCapital Group Plc	Libertas Capital Corporate Finance Ltd	Peterhouse Corporate Finance	Tavistock Communications
	(NOMAD & Joint Broker)	(Joint Broker)	(Financial PR & IR)
020 3617 8739	020 7569 9650	020 74690930	020 7920 3150

About CareCapital

CareCapital is building a portfolio of innovative cancer treatment services to capture opportunities in the cancer diagnosis and treatment market, building on its 28.75% stake in Advanced Proton Solutions (Holdings) Ltd and its 75% owned Oncotherapy Resources business focused on early stage breast cancer treatment from the Xoft System.

The Xoft System uses an electronic X-ray source instead of a radioactive isotope to deliver radiation internally.  The low energy and rapid dose fall-off of the electronic source allow for treatment in rooms with reduced shielding requirements compared to conventional radiation therapy.  It is lightweight and mobile and can be moved easily between treatment locations.  This means that it can overcome the logistical challenges faced by many patients who may have to travel long distances to access conventional radiotherapy.

Advanced Proton Solutions is pioneering the use of Proton Beam Therapy in the UK and which has secured planning approval for its first London based centre off Moorgate in the City of London, within easy access of a number of London's major hospitals. 

In addition, CareCapital has a mutually exclusive agreement with Varigen Technologies to use Varigen's expertise in the areas of genetic testing and its application to both the diagnosis and development of personalized medical treatments for patients with malignant diseases.

CareCapital also specialises via its wholly owned subsidiary Healthcare Development Company, as an innovative developer, in primary care real estate, focusing on multi-occupancy premises that accommodate a variety of different, but often synergistic healthcare providers.  This is particularly relevant at a time when Government is intent on expanding primary care, bringing more services together under one roof and closer to patients in their own communities.  Working in partnership with local authorities, projects can involve significant urban regeneration, with mixed-use and mixed-economy developments incorporating housing, healthcare, childcare, retail and other appropriate facilities for the community.

The Company recently announced that it would week to demerge Healthcare Development Company in order to focus on its portfolio of cancer treatment services businesses.

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