IP Group's portfolio company raises £40m in placing

Intellectual property-business IP Group said on Friday that its portfolio company, Tissue Regenix, has raised £40m through a placing and subscription of new ordinary shares as it announced the acquisition of CellRight Technologies.

The medical devices group plans to use the proceeds to finance the initial consideration for the acquisition, to accelerate growth and to provide working capital to support the ongoing commercialisation of its existing programmes.

IP Group has agreed to a total subscription of £5m as part of the placing, which will leave it with a total of just over 153m shares in Tissue Regenix, or 13.2% of the company's enlarged share capital.

The placing is conditional upon shareholder approval at the company's general meeting in August.

At 1445 BST, the shares were up 0.9% to 141.20p.