Rex Bionics raises 10M pounds in back-door listing in London
Rex Bionics raises 10 million pounds in back-door listing on London’s AIM exchange
By Paul McBeth
May 6 (BusinessDesk) - Rex Bionics has raised 10 million pounds as part of a reverse-listing on London’s growth-orientated AIM exchange to fund the roll-out of its robotic exoskeletons for wheelchair users.
The placement is part of a deal that sees North Shore-based Rex Bionics acquired by Union MedTech once it joins the AIM exchange and take on the New Zealand firm’s name. Union MedTech sold 5.56 million shares at 1.80 pounds each in a placement last week, which will leave a net 8.8 million pounds for Rex Bionics once the transaction is completed.
“We are now well-funded to scale up our production and marketing capabilities to meet the growing demand of wheelchair users worldwide to gain access to the life-changing and unparalleled Rex technology,” Union chief executive Jeremy Curnock Cook said in a statement. “We are delighted to welcome our new investors and would like to thank them, and existing shareholders, for their support.”
In October, Union agreed to takeover over Rex Bionics in an all-scrip deal valuing the exoskeleton at 9.5 million pounds, and last week’s placement and listing on the AIM exchange will leave the firm 49.8 percent owned by the New Zealand company’s investors. Trading in the new entity on the London Stock Exchange’s AIM market will begin on May 8.
Of the funds raised in the placement, 1.9 million pounds has been earmarked for ramping up sales and marketing of the exoskeletons, 1.7 million pounds for scaling up manufacturing, 1.6 million pounds for research and development, 1.4 million pound for general and administrative uses, and 2.2 million pounds for working capital.
The new company’s near-term goal will be to grow sales of its rehab product targeting rehabilitation centres in Europe and the US, and is planning the release of a slimmed down and cheaper device in the coming three years.
Rex Bionics reported sales of $976,000 in the six months ended Sept. 30 compared to $15,000, according to its admission document to list on the AIM exchange. It narrowed its net loss in the period to $722,000 from $2.1 million a year earlier. The New Zealand firm made a loss of $2.5 million on sales of $394,000 in the year ended March 31, 2013.
Since the 2011 financial year, Rex Bionics raised $4.1 million through share issues and $2.4 million in short-term borrowings.
It has also received some $2.9 million in government funding for research and development, a condition of which requires Rex Bionics’ production to stay in New Zealand until 2017.