LiDCO Group Plc LID Fundraising to raise £2.35 million

  LiDCO Group Plc (LID) - Fundraising to raise £2.35 million

RNS Number : 9435Q
LiDCO Group Plc
13 November 2012




THIS ANNOUNCEMENT AND  THE INFORMATION  CONTAINED IN  IT IS  NOT FOR  RELEASE, 
PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY,  IN WHOLE OR IN PART,  IN 
OR INTO OR FROM ANY JURISDICTION WHERE  TO DO SO MIGHT CONSTITUTE A  VIOLATION 
OF LOCAL APPLICABLE SECURITIES LAWS OR REGULATIONS.

                                      

                                      

                               LiDCO Group Plc

                                      

                      Fundraising to raise £2.35 million

                              Director's dealing

                                      



LiDCO Group  Plc  ("LiDCO"  or  the  "Company"),  the  hemodynamic  monitoring 
Company, is pleased to  announce that it has  conditionally raised a total  of 
£2.35 million  (before  expenses)  through the  placing,  through  its  broker 
finnCap Limited ("finnCap"), of 16,996,762  new ordinary shares of 0.5  pence 
each ("Ordinary Shares"  and the "Placing  Shares") to existing  institutional 
shareholders (the "Placing") and a subscription  by a director of the  Company 
and another existing shareholder  for a total of  426,238 new Ordinary  Shares 
(the "Subscription Shares"), in  each case at  a price of  13.5 pence per  new 
Ordinary Share (the "Placing Price").



The Company intends to  use the net proceeds  of the Placing and  Subscription 
(together, the "Fundraising"), which was over-subscribed, to fund a number  of 
new and existing  projects which the  directors of the  Company (the  "Board") 
believe have the potential to increase  earnings in the near and longer  term, 
as set out below.



Firstly, as set out in the Company's interim results (announced on 23  October 
2012), the Board has agreed terms  with its US distribution partner to  access 
the existing  LiDCOrapid customer  base in  the US.  The Board  believes  that 
deploying a proportion  of the proceeds  of the Fundraising  in pursuing  this 
opportunity, after  an initial  integration and  switch-over period,  has  the 
potential to enhance the profitability of the Company and aid in  negotiations 
with other potential partners in that market.



Secondly, with additional financial resources, the Company can accelerate  the 
retro-fit of  its UK  installed base  of LiDCOrapid  monitors with  the  Unity 
software and  its continuous  non-invasive blood  pressure module.  This,  the 
Board believes, greatly expands the market  opportunity as the monitor may  be 
used when an  arterial line is  not present  and this is  expected to  further 
drive the increase of sales of single patient use smartcards.



Furthermore,  additional  proceeds  will  be  deployed  in  strengthening  the 
Company's balance sheet and position  the Company so as  to be able to  pursue 
other growth opportunities as and when they arise.



Further information in respect of the Fundraising is set out below.



                                   - Ends -



For further information, please contact:



LiDCO Group Plc
Terry O'Brien (CEO)              Tel: +44 (0)20 7749 1500
Paul Clifford (Finance Director)
Theresa Wallis (Chairman)                   www.lidco.com



finnCap
Geoff Nash / Henrik Persson (Corporate Finance) Tel: +44 (0)20 7600 1658

Stephen Norcross (Broking)                               www.finncap.com



Media enquiries:

Abchurch
Adam Michael / Simone Elviss / Jamie Hooper Tel: +44 (0) 20 7398 7719
jamie.hooper@abchurch-group.com               www.abchurch-group.com





Details of the Placing and Subscription

The Company has, in each case at the Placing Price of 13.5 pence per  Ordinary 
Share:

(i) by way of the Placing,  conditionally raised £2.29 million by  the 
issue of  the 16,996,762  Placing  Shares through  its broker,  finnCap,  with 
existing institutional investors; and

(ii) by way of the Subscription, conditionally raised £0.06 million  by 
the issue of the 426,238 Subscription Shares.



The Placing Price represents a discount of 6.9 per cent. to the closing middle
market price of an Ordinary Share of 14.5 pence on 12 November 2012 (the  last 
trading day prior to the publication of this announcement).



The Placing Shares  and the  Subscription Shares together  (the "New  Ordinary 
Shares") represent approximately 9.9 per cent. of the issued share capital  of 
the Company prior to the  issue of the New  Ordinary Shares. The New  Ordinary 
Shares will  be issued  pursuant  to the  existing  authority granted  to  the 
Directors to  allot  shares free  from  statutory pre-emption  rights  at  the 
Company's annual general meeting on 13 June 2012.



Application has been made  for the New Ordinary  Shares, which will rank  pari 
passu in all respects with the existing Ordinary Shares of the Company, to  be 
admitted to trading on  AIM ("Admission"), which is  expected to be  effective 
from 8.00 a.m. on 16 November 2012.



The Placing is conditional, inter alia, upon Admission becoming effective  and 
the placing agreement entered  into between the  Company and finnCap  becoming 
unconditional in all respects by no later  than 8.00 a.m. on 16 November  2012 
or such later date (being not later than 5.00p.m. on 30 November 2012) as  the 
Company and finnCap may agree.



The Subscription  is  conditional,  inter alia,  upon  the  Placing  Agreement 
becoming unconditional as set out  above and Admission becoming effective,  as 
set out above.



Director's dealing

Mr Paul Clifford, a  director of the Company,  has committed to subscribe  for 
59,660 Subscription Shares at the Placing Price pursuant to the  Subscription. 
Subsequent to completion of the  Subscription, Mr Clifford will be  interested 
in 659,660 Ordinary Shares, representing  0.34% of the Company's issued  share 
capital.



Total Voting Rights

Following the issue of the New Ordinary Shares, the total issued share capital
of the Company  will be  193,531,304 Ordinary  Shares. The  Company holds  no 
Ordinary Shares in treasury. Accordingly,  after Admission, the total  number 
of voting rights in the Company will be 193,531,304.





About LiDCO Group Plc

LiDCO is a supplier of minimally invasive hemodynamic equipment to  hospitals, 
to monitor the amount of blood flowing  around the body and ensure that  vital 
organs are adequately oxygenated. LiDCO's products facilitate the application
of hemodynamic optimization protocols for high risk patients in both  critical 
care units and in the operating theatre.



Increasingly clinical studies are showing  that the optimization of  patients' 
hemodynamic status in high risk patients produces better outcomes and  reduced 
hospital stay.  LiDCO's computer-based  technology, developed  at St  Thomas' 
Hospital in  London, has  been  shown to  significantly reduce  morbidity  and 
complications, length of stay and overall costs associated with major surgery.



Key products



LiDCOplus: a computer-based platform monitor  used in the Intensive Care  Unit 
for real-time continuous display  of hemodynamic parameters including  cardiac 
output, oxygen delivery and fluid-volume responsiveness (PPV% and SVV%).


LiDCOrapid: a  cardiac output  monitor designed  specifically for  use in  the 
operating  theatre  for  fluid  and  drug  management.  The  monitor   enables 
anesthetists to get accurate and immediate feedback on the patient's fluid and
hemodynamic status - a  key measure of overall  well-being before, during  and 
after surgery. The LiDCOrapid provides:
·                 early and rapid  warning of  hemodynamic change  to 
                           aid choice of therapeutic route: fluid or drug
·            quantification of hemodynamic response,
·            guidance on effective delivery of fluids to  ensure 
                           the right amount at the right time
LiDCOview: an  easy-to-use  graphical  display  of  historical  LiDCOplus  and 
LiDCOrapid hemodynamic data.


LiDCO Unity Software: The software incorporated into LiDCOrapid v2 will  allow 
the  LiDCOrapid  monitor  to  co-display  Covidien's  level  of  consciousness 
parameter and add the convenience of CNSystem's continuous non-invasive  blood 
pressure monitoring. This will address a growing requirement for  non-invasive 
monitoring solutions that are more  comprehensive and can effectively  replace 
multiple single parameter monitors.





LiDCO monitors use  single-patient disposables (sensors  or smartcards)  which 
provide an ongoing revenue stream.



LiDCO distribution network:

LiDCO's strategy is to  sell directly to  hospitals in the  UK, and through  a 
network of specialty critical care and anesthesia distributors in the rest  of 
the world.



LiDCO's  sales  office  is  in  Cambridge,  its  manufacturing  facility   and 
headquarters are  in  London and  its  shares are  traded  on AIM.  For  more 
information please see www.lidco.com.



Important notice



Neither the content  of the Company's  website nor any  website accessible  by 
hyperlinks to the Company's website is incorporated in, or forms part of, this
announcement.  The   distribution  of   this  announcement   and  any   other 
documentation associated with  the Placing into  jurisdictions other than  the 
United Kingdom may be restricted by law. Persons into whose possession  these 
documents  come  should   inform  themselves  about   and  observe  any   such 
restrictions. Any failure to comply with these restrictions may constitute  a 
violation of the securities laws or regulations of any such jurisdiction.  In 
particular,  such  documents  should  not  be  distributed,  forwarded  to  or 
transmitted, directly or indirectly, in whole or in part, in, into or from the
United States, Australia, Canada, Japan or the Republic of South Africa or any
other jurisdiction where to do so may constitute a violation of the securities
laws  or   regulations  of   any  such   jurisdiction  (each   a   "Restricted 
Jurisdiction").



The Placing Shares  have not  been and  will not  be registered  under the  US 
Securities Act  1933  (as amended)  (the  "US  Securities Act")  or  with  any 
securities regulatory  authority of  any state  or other  jurisdiction of  the 
United States and, accordingly,  may not be offered,  sold, resold, taken  up, 
transferred, delivered  or distributed,  directly  or indirectly,  within  the 
United States  except  in  reliance  on an  exemption  from  the  registration 
requirements of the US  Securities Act and in  compliance with any  applicable 
securities laws of any state or other jurisdiction of the United States.



There will be no public offer of the Placing Shares in the United States. The
Placing Shares  are being  offered and  sold  outside the  US in  reliance  on 
Regulation S under the  US Securities Act. The  Placing Shares have not  been 
approved or  disapproved by  the US  Securities and  Exchange Commission,  any 
state securities commission in  the US or any  other US regulatory  authority, 
nor have any of the foregoing  authorities passed upon or endorsed the  merits 
of the offering  of the Placing  Shares or  the accuracy or  adequacy of  this 
announcement. Any representation to the contrary is a criminal offence in the
US.



The Placing Shares have not been and will not be registered under the relevant
laws of any state,  province or territory of  any Restricted Jurisdiction  and 
may not  be  offered,  sold,  resold,  taken  up,  transferred,  delivered  or 
distributed, directly or indirectly, within any Restricted Jurisdiction except
pursuant to  an applicable  exemption from  registration requirements.  There 
will be no public offer of Placing Shares in Australia, Canada, Japan, or  the 
Republic of South Africa.



This announcement is for information purposes only and does not constitute  or 
form part of any offer  to issue or sell, or  the solicitation of an offer  to 
acquire, purchase or  subscribe for,  any securities in  any jurisdiction  and 
should not be relied upon in connection with any decision to subscribe for  or 
acquire any of the Placing Shares.  In particular, this announcement does  not 
constitute or form part of any offer to issue or sell, or the solicitation  of 
an offer to acquire, purchase or  subscribe for, any securities in the  United 
States.



This announcement has been issued by,  and is the sole responsibility of,  the 
Company. No person has been authorised to give any information or to make any
representations other than those contained in this announcement and, if  given 
or made, such information or representations  must not be relied on as  having 
been authorised  by the  Company or  finnCap. Subject  to the  AIM Rules  for 
Companies, the issue  of this  announcement shall not,  in any  circumstances, 
create any implication that  there has been  no change in  the affairs of  the 
Company since the date of this announcement or that the information  contained 
in it is correct at any subsequent date.



finnCap, which  is authorised  and  regulated in  the  United Kingdom  by  the 
Financial Services Authority,  is acting for  the Company and  no one else  in 
connection with the Placing and will  not regard any other person (whether  or 
not a recipient of this announcement) as  a client in relation to the  Placing 
and will not be responsible to anyone other than the Company for providing the
protections afforded to its clients or for providing advice in relation to the
Placing or any matters referred to in this announcement.



Apart from the responsibilities and liabilities, if any, which may be  imposed 
on finnCap by the  Financial Services and Markets  Act 2000, finnCap does  not 
accept any responsibility  whatsoever for the  contents of this  announcement, 
and makes no representation or warranty, express or implied, for the  contents 
of this announcement, including its accuracy, completeness or verification, or
for any other statement made or purported to be made by it, or on its  behalf, 
in connection  with the  Company or  the Placing  Shares or  the Placing,  and 
nothing in this  announcement is  or shall  be relied  upon as,  a promise  or 
representation in this  respect whether  as to  the past  or future.  finnCap 
accordingly disclaims  to the  fullest extent  permitted by  law all  and  any 
liability whether arising in tort, contract or otherwise (save as referred  to 
above) which it might  otherwise have in respect  of this announcement or  any 
such statement.



No statement in this announcement is intended  to be a profit forecast and  no 
statement in this announcement should be interpreted to mean that earnings per
share of  the  Company  for  the  current  or  future  financial  years  would 
necessarily match or exceed the historical published earnings per share of the
Company.



This announcement may  include statements that  are, or may  be deemed to  be, 
"forward-looking  statements".  These   forward-looking  statements  can   be 
identified by  the use  of forward-looking  terminology, including  the  terms 
"believes",  "estimates",  "plans",   "projects",  "anticipates",   "expects", 
"intends", "may", "will",  or "should"  or, in  each case,  their negative  or 
other variations or comparable terminology. These forward-looking  statements 
include matters that  are not historical  facts. They appear  in a number  of 
places throughout  this  announcement  and include  statements  regarding  the 
directors' current intentions, beliefs or expectations concerning, among other
things, the Company's results  of operations, financial condition,  liquidity, 
prospects, growth, strategies  and the  Company's markets.  By their  nature, 
forward-looking statements involve risk and uncertainty because they relate to
future events and circumstances. Actual results and developments could differ
materially from those expressed or implied by the forward-looking statements.
Forward-looking statements  may and  often do  differ materially  from  actual 
results. Any forward-looking  statements in  this announcement  are based  on 
certain factors and  assumptions, including the  directors' current view  with 
respect to future events  and are subject to  risks relating to future  events 
and other  risks,  uncertainties and  assumptions  relating to  the  Company's 
operations, results of operations, growth strategy and liquidity. Whilst  the 
directors consider these assumptions to  be reasonable based upon  information 
currently available, they may prove to be incorrect. Save as required by  law 
or by the  AIM Rules for  Companies, the Company  undertakes no obligation  to 
release  publicly  the  results  of  any  revisions  to  any   forward-looking 
statements in  this announcement  that may  occur  due to  any change  in  the 
directors' expectations or to reflect  events or circumstances after the  date 
of this announcement.

                     This information is provided by RNS
           The company news service from the London Stock Exchange

END


MSCEANFAFEPAFFF -0- Nov/13/2012 07:00 GMT