Belluscura (BELL) , a next generation developer of portable oxygen concentrators (POCs) used to treat patients with COPD and other acute respiratory conditions, said today that it plans to raise £2.4m ($3m) of top up funding in order to facilitate the next stage of its growth strategy.
Indeed, in terms of demand, sales of X-PLOR came in at $820k for the 3 months ending May'24, with the monthly run-rate doubling over the quarter. Indeed, May generated record turnover of $450k across both DTC and B2B channels, including $200k for China.
Elsewhere, the launch of its new groundbreaking DISCOV-R is on track for June, with demand similarly anticipated to be "strong". In particular, China is the world's largest COPD market with almost 100m sufferers, where local manufacturing partner Innomax will pay a minimum royalty and a percentage of the profits. In fact, AsiaPac as a whole is forecast to be worth almost $1bn over the next 6 years.
The last piece of the jigsaw though is funding.
Hence this morning BELL proposed to issue £2.4m of 5-year convertible 7% loan notes (CLN). Details of this fresh capital are still to be agreed, but once confirmed they will be submitted to shareholders for approval at a general meeting. As at 31 May'24, BELL's cash balances were $1.1m, excluding an estimated $9.0m of 10% convertible debt, split across 2 tranches ($5.7m and $3.3m) with corresponding 50p and 40p/share conversion prices and repayable in 2026.
Expressions of interest to participate in the new £2.4m CLN placing have already been received from various investors, alongside certain directors.
Non-exec Chairman Adam Reynolds commenting: "The group has made significant progress in recent months, culminating in record sales for X-PLOR in May 2024. The proposed fundraise will provide flexibility to capitalise on the strong anticipated demand for X-PLOR through the remainder of 2024 and the considerable interest in DISCOV-R, which is expected to start shipping this month."
Chief Medical Officer Patrick J Strollo, Jr MD, adding: "[Weighing] less than 4lbs, the X-PLOR facilitates mobility and improves quality of life in oxygen dependent patients. The recent French study [involving 240k patients] provides further support that small, lightweight, oxygen concentrators are cost effective and improve survival in vulnerable patients with chronic respiratory failure."
FY'23 audited results will be published by 28th June.
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