Integumen drops after entering into agreement with Cellulac

Integumen's shares dropped on Tuesday after it entered into an agreement with Cellulac to acquire hi-tech laboratory test equipment for installation into its enlarged Labskin UK laboratories in York.

The personal health care company said the expanded laboratory will house the newly-acquired range of specialised test equipment, which includes gas chromatography-mass spectrometry and high-performance liquid chromatography units and ancillary equipment acquired for £0.4m, which will be satisfied by the issue of a loan note.

Cellulac has the right to convert the loan note into new shares in Integumen within five business days following announcement of the next issue of shares until February 2021, with the exercise price to be at a price per share not less than 1.5p.

Gerard Brandon, chief executive of Integumen, said: "Our Labskin 'wet lab' is enabled by automation of the digital laboratory equipment connected to the Labskin AI system, delivering a seamless transfer of analysed data in the cloud, from the Labskin test bed straight to the display screens of our growing list of clients."

The AIM traded company said that the new equipment extends Labskin's capability beyond skin care test services by monitoring the molecular growth and odour causing bacteria on lab-grown human skin.

The equipment will connect directly to the Labskin AI integrated 'laboratory to market' services platform and transform many of the current manual testing services into high-speed fully automated processes, according to a statement from Integumen.

Integumen's shares were down 10.36% at 1.38p at 1641 GMT.