TPI provides its latest research note on Avacta Group plc (AVCT.L)

Avacta has successfully completed the bookbuild of a heavily oversubscribed Placing that was announced yesterday morning. As joint broker to the Company, Turner Pope was able to secure a good allocation in the Fundraising for its clients through its participation in the bookbuild and also through a direct subscription.

The Fundraising has conditionally raised gross proceeds of, in aggregate, £48 million, before expenses, through the issue of 40 million New Ordinary Shares at an issue price of 120p/share, representing just a 4.4% discount to 30-day volume weighted average price (‘VWAP’).

The originally proposed Fundraise was enlarged to accommodate significant retail demand. First Admission to trading of the new shares is expected to be on 10 June 2020 and the second on 25 June 2020.

By taking this initiative, Avacta’s Board has recognised the demand from institutional and private investors to capitalise the business fully to unlock the pipeline of differentiated cancer therapies centred on its pre|CISION™ and Affimer® platforms, expand its diagnostic products pipeline and provide the working capital required to grasp the potentially huge short and longer-term commercial opportunities now being presented by the COVID-19 antigen tests in development with partners.

TPI considers the successful completion of this Fundraising will now enable the Company to reach a number of major inflection points it is currently presented with.

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We would draw your attention to the various disclaimers in the document both at the beginning and at the end of the note. Retail clients (as defined by the rules of the FCA) must not rely on the research document. In particular you should note that the research document is a non-independent marketing communication. The analyst who has prepared the research is aware that TPI provides research to Avacta Group plc Accordingly the research has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibitions on dealing ahead of its dissemination.

The information in the document is published solely for information purposes and is not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. The material contained in the document is general information intended for recipients who understand the risks associated with equity investment in smaller companies. It does not constitute a personal recommendation as defined by the FCA or take into account the particular investment objectives, financial situation or needs of individual investors nor provide any indication as to whether an investment, a course of action or the associated risks are suitable for the recipient.

Copyright © 2020 Turner Pope Investments (TPI) Limited, all rights reserved.

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