Glasgow Life Sciences Company Secures £4m Investment
The funding will help the Glasgow life sciences company expand manufacturing activities and repay existing debt.
Rosen’s Diversified Inc (RDI), a multi-billion-dollar US business involved in food production, agrichemicals and distribution, is investing £4.18 million in Scottish life sciences firm, Collagen Solutions.
Scientific Life Solutions, a subsidiary of RDI, will also supply the Glasgow-based biomaterial manufacturer with tissue, as the firm specialises in medical grade collagen and tissue components.
In total, Collagen Solutions is looking to raise £6 million from its investors. The funds raised will contribute towards expansion of contract manufacturing activities, product development and the repayment of existing debt, as well as funding working capital
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The subscription will require shareholder approval and it, along with the placing and open offer, will be at 5p a share – a premium of 23.5% to Collagen’s closing price last week.
Jamal Rushdy, CEO of Collagen Solutions, said: “This funding round will support continued growth of our core business, including our supply of collagen and tissue biomaterials, as well as new product development contracts activity, providing the company a solid foundation over the next several years.”
The announcement of the funding was released alongside Collagen stating in a trading update that revenue for the full year is expected to be £4.15 million- above market expectations. This represents an 18% increase for the company from 2018.