Itaconix PLC (LON:ITX) has closed what it said was an oversubscribed fundraising in order to help fund the commercial development of its core products.

The polymer specialist said it has raised £1.76mln through the placing and subscription of 160mln new shares with certain existing and new institutional and other investors at a price of 1.1p each, a 15% discount to its previous closing price.

READ: Itaconix receives loan under US small business scheme

The company also said it intends to invite certain eligible US participants to a further issue of new equity in the company by way of the an additional subscription of up to 3.64mln new shares at the issue price to raise another £40,000. 

Itaconix said the proceeds of the placing and subscription are expected to provide enough funding until at least the end of 2021, during which the group said it expects to make “significant progress towards its medium term plan to achieve break-even profitability”.

Announcing its plans for the fundraising after Tuesday’s close, the firm added that it had continued to make commercial progress in the first five months of 2020, with revenue in the period at US$900,000, 91% higher year-on-year.

Shares in Itaconix were steady at 1.3p in late-afternoon deals on Wednesday.

–Adds result of fundraising and updates share price–