Fusion IP raises £5 million in share placing

University commercialisation investor Fusion IP(LON:FIP) today announced that it has raised just over £5 million through a share placing.

It said it has sold new shares in the company to both new and existing investors.

The new funds will allow the company to continue investing in early stage technology companies, based on the research of Cardiff and Sheffield Universities. It will allow support the group’s medium term working capital.

This means that Fusion can continue investing in its portfolio companies through subsequent financing rounds.

“We are very pleased to announce this additional investment in the company from both current and new shareholders,” said chief executive David Baynes.

“We believe these funds, plus monies we expect to generate out of our growing portfolio, puts us in a strong position to maximise the return from both our portfolio and future companies.”

Broker Seymour Pierce carried out the share placing on the company’s behalf. Fusion said that 17.8 million new shares will be issued at a price of 28p each.

Fusion is currently invested in more than 20 portfolio companies. These companies give the firm a well-balanced asset base of engineering, software and medical businesses, it said.

“The value of the portfolio is growing and the company anticipates it will be able to demonstrate this further in the current financial year, and capitalise on the progress made to date towards its first cash realisation,” the company said today.

While the share placing will support the business in the near term Fusion also emphasised that some realisation of its current investments would provide the group’s medium and long term funding.

Typically, Fusion would realise its investment by either a trade sales or by floating a portfolio company on a stock exchange.

The company today said that talks are currently underway with regards to one potential realisation.

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