HEALTHY drinks group Provexis has announced plans to strengthen its balance sheet with a £5m rights issue.
The firm, which has a research and development division at the University of Liverpool’s MerseyBio centre, has developed Fruitflow, a tomato-based drink that thins the blood and helps circulation. Fruitflow was initially manufactured as a demonstration product called Sirco, but has yet to make a profit.
The company lost £4.5m in the year to March, 2009, compared with a loss of £1.1m the previous year. A goodwill write-off relating to an acquisition dating back to 2005 accounted for £3m of this year’s figure.
Stephen Moon, Provexis chief executive, said: “The proceeds of the Subscription will significantly strengthen our balance sheet, putting us in a stronger position when negotiating commercial arrangements for our patented, scientifically-proven Fruitflow heart-health technology.
“It will also enable the company to explore and accelerate the development of new claims for Fruitflow and our NSP#3G plantain technology for the treatment of inflammatory bowel disease-related conditions.
“Finally, this substantial injection of capital will enable management to explore the acquisition of new functional and medical food technologies to strengthen the pipeline and enhance long-term shareholder value.”
