Placing and Subscription for Shares
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THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF THE MARKET ABUSE REGULATION (596/2014/EU) ("MAR"). IN ADDITION, MARKET SOUNDINGS (AS DEFINED IN MAR) WERE TAKEN IN RESPECT OF CERTAIN OF THE MATTERS CONTAINED IN THIS ANNOUNCEMENT, WITH THE RESULT THAT CERTAIN PERSONS BECAME AWARE OF SUCH INSIDE INFORMATION, AS PERMITTED BY MAR. UPON THE PUBLICATION OF THIS ANNOUNCEMENT, THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN AND SUCH PERSONS SHALL THEREFORE CEASE TO BE IN POSSESSION OF INSIDE INFORMATION.
DXS INTERNATIONAL PLC
Placing and Subscription
DXS International plc ("DXS", the "Company"), the digital clinical decision support company, is pleased to announce that it has through Hybridan LLP (“Hybridan”) raised in excess of GBP 1,000,000 (before expenses) (the "Fundraising"), more than twice oversubscribed and including new institutional investors. The Fundraising comprises a placing of 12,475,000 New Ordinary Shares (the "Placing") and a subscription of 200,000 new Ordinary Shares (the "Subscription") all at a price of 8 pence per share (the "Placing Price").
The Placing raised GBP 998,000 and the Subscription GBP 16,000 for new ordinary shares of 0.33 pence each ("New Ordinary Shares"). David Immelman, the Company’s Chief Executive Officer, and another senior manager participated in the Subscription providing GBP 14,000 and subscribing for 175,000 New Ordinary Shares at the Placing Price.
Application has been made for admission of the New Ordinary Shares, with trading on the NEX Exchange Growth Market ("NEX") expected to commence on 26th February 2020 ("Admission"). Hybridan acted as sole broker to the Company on the Fundraising.
The Placing and Subscription shares will represent approximately 26.27 per. cent. of the total issued share capital of the Company, post Admission and the issued share capital of the Company will be 48,256,416 ordinary shares. This figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or change to their interest in, the Company under the FCA's Disclosure Guidance and Transparency Rules.
The net proceeds of the Fundraising, which will be approximately GBP 955,000, will be used by the Company to invest in the Group's operations. As an accredited NHS Supplier under the new GP IT Futures programme (GPITF), the funding is to provide working capital to take the company’s newly developed healthcare solutions to market. GPITF is central to the NHS Long Term Plan, the five-year framework for GP contract reform and the NHS’ Digital, Data and Technology Vision.
DXS is also pleased to announce that its core solution was one of the first to be funded under this new GPITF agreement and the transition to the new framework has been smooth and included a modest price uplift.
These new solutions, into which the Company has invested more than GBP 4 million, are aligned with the NHS’ long term plan and are expected to have a significant positive impact on the UK healthcare sector, initially in particular the treatment of Hypertension.
NHS accreditation for our new solution suite, which will ensure central NHS funding, is expected to be complete by the end of April 2020. Early pilots and trials are receiving positive feedback.
David Immelman, Chief Executive Officer, commented:
“We are delighted by the response to our first institutional fundraise. It was 100% oversubscribed with the welcome addition of new VCT and EIS funds onto our shareholder register. The growth capital received will be directly put towards growing our presence in the UK and build upon the already 2,000 strong GP practices in which we currently operate.
We also welcome the Government’s recent message stating that the NHS adopting better technology is not a ‘nice to have’ but is vital to its operation. This bodes well for DXS as we are one of the very few NHS accredited suppliers of clinical decision support tools to the healthcare sector”.
The Directors of DXS International plc accept responsibility for this announcement
Contacts:
| David Immelman (Chief Executive) DXS International plc | 01252 719800 |
| -systems.co.uk |
| Corporate Advisor | |
| City & Merchant Limited David Papworth | 020 7101 7676 |
| Corporate Broker and sole broker to the Placing | |
| Hybridan LLP Claire Louise Noyce | 020 3764 2341 |
Notes to Editors
About DXS:
DXS International plc presents up to date treatment guidelines and recommendations, from Clinical Commissioning Groups and other trusted NHS sources, to doctors, nurses and pharmacists in their workflow and during the patient consultation. This effective clinical decision support ultimately translates to improved healthcare outcomes delivered more cost effectively and which should significantly contribute towards the NHS achieving its projected efficiency savings.
