Services

Tissue Science Laboratories: Placing of new Ordinary Shares to raise £8 million

24th February 2005

Tissue Science Laboratories plc (LSE: TSL), the medical devices company specialising in human tissue replacement and repair products derived from porcine dermis, today announces its intention to raise approximately £8 million (£7.5m net of expenses) by way of a Placing and Open Offer of 4,690,641 New Ordinary Shares. The offer price of 171 pence per New Ordinary Share represents a 7 per cent. discount to the closing mid-market price of 184 pence for Ordinary Shares traded on AIM on 23 February 2005.

A prospectus published by the Company and containing details of the Placing and Open Offer is expected to be posted to Shareholders today together with an Application Form in respect of the Open Offer. Code Securities is acting as nominated adviser.

Highlights

  • Placing and Open Offer raising approximately £8 million before expenses (approximately £7.5 million net of expenses).
  • The net proceeds will enable the Company to fund further marketing of current products and product line extensions, as well as additional investment in product and pipeline development. The proposed product development expenditure would be primarily targeted in applications where TSL already has market access, and/or where existing core technology can be extended.
  • Qualifying Shareholders can apply for New Ordinary Shares pursuant to the Open Offer on the basis of 4 New Ordinary Shares for every 21 Ordinary Shares held;
  • Certain Qualifying Shareholders have undertaken not to take up their entitlement to an aggregate of 1,546,109 New Ordinary Shares under the Open Offer and these have been placed firm with institutional investors. The remaining 3,144,532 New Ordinary Shares (representing 67 per cent of the New Ordinary Shares) are being placed with institutional investors subject to Qualifying Shareholders’ rights to take up under the Open Offer;
  • The Placing and Open Offer has been arranged by Code Securities Limited.

Code Securities Limited (which is regulated in the United Kingdom by the Financial Services Authority) is acting solely for Tissue Science Laboratories plc in connection with the Placing and Open Offer and is not acting for any person other than Tissue Science Laboratories plc and will not be responsible for any person other than Tissue Science Laboratories plc for providing the protections afforded to clients of Code Securities Limited or for providing advice to any person in connection with the matters described in this document.

This announcement does not constitute, or form any part of, an offer or solicitation of an offer to subscribe for the Offer Shares.

There will be a meeting for analysts this morning at 9:30am at Threadneedles Hotel, 5 Threadneedle Street, London EC2R 8AY. For registration and/or enquiries, please contact Nathalie Barone, Hogarth PR, on tel: 020 7357 9477 or nbarone@hogarthpr.co.uk.

Enquiries:

TSL plc    
Martin Hunt, Chief Executive      Tel: 01252 369603
David Jennings, Finance Director   Tel: 01252 369603
Code Securities Limited    
Juliet Thompson   Tel: 0207 024 2004
    Fax: 0207 024 2001
Hogarth Partnership Limited    
Melanie Toyne-Sewell / Kate Catchpole   Tel: 020 7357 9477
    Mob: 07767 66 00 40
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