Avacta to acquire diagnostics firm following placing

AIM-quoted diagnostic tests and testing equipment supplier Avacta has proposed to acquire diagnostics firm Aptuscan for £1.48m using funds raised from a placing.

The firm today announced the placing of up to 1,026m ordinary shares at a price of 0.5 per share to raise £5.3m. Once completed, the £1.48m acquisition will be paid through the payment of ordinary shares at a price of 0.65p.

Chief Executive Officer Dr. Alastair Smith said: "The company has made an excellent start to this financial year with good growth in Optim orders, growing revenues in Optim consumables, and a very successful launch of AX-1 at the London Vet Show.

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"The acquisition of Aptuscan, proposed in the circular to shareholders, would add a disruptive reagents platform to the Avacta portfolio, capable of enhancing the product offerings of both Avacta Analytical and Avacta Animal Health."

The remaining funds from the placing will then be used "on activities which the directors believe will accelerate the growth in Avacta" - these include providing development capital for a wide range of analytical and diagnostic tools.

The firm also plans to accelerate its Animal Healthcare business through the more rapid expansion of the range of tests for its AX-1 diagnostic units.

The share price fell 25.48% to 0.58p by 08:45.

NR