Microsaic Systems increases H1 revenue; announces £5m placing

AIM-listed Microsaic Systems, the developer of chip-based mass spectrometry instruments, said it increased first-half revenue to £0.47m from £0.23m and announced a plans to raise gross proceeds of up to £5.4m through a placing of ordinary shares to existing and new investors.

The company said it had made “excellent progress in realigning the business strategy” to focus on the pharma market, “where there is a clear opportunity to create integrated products that combine mass spectometry with separation and purification technologies”.

Microsaic said it had more than doubled product sales to 15 units compared with the first half of 2015. Operating expenses fell 6% to £0.12m from the same period last year-on-year and about £0.48m below the second half of 2015, reflecting tight cost control and the change in strategy.

Losses before tax narrowed slightly to £1.73m from £1.75m.

Chief executive Jim Ramage said: "Since last September, the Company has rigorously cut costs and extended its cash runway but it now requires extra funding to allow it to further develop the product and new partnerships necessary to create a profitable self-funding business.”

The placing will be 108m new shares at 5p each and the net proceeds will provide extra working capital and capital resources to execute its revenue growth plans, which are aimed at “supporting the commercialisation of the business through investing in recruitment, streamlining of manufacturing processes and strengthening the Company's working capital position”.