Syntopix confirms £2m share placing

The group, which was spun out of the University of Leeds, said it is issuing almost three million new shares to directors and institutional investors.

Bradford-based Syntopix will use the funds to pay for further studies into its lead compounds, which combat skin disorders, oral disease and body odour.

Priced at 67p, the shares are being issued at a 9.5 per cent discount to Friday's closing price. Subject to shareholder approval, the placing will raise 1.9m after expenses, giving the group 18 to 24 months' spending power

"The placing will be used by the group to undertake further human use studies with its lead compounds... as well as additional working capital to fund the group's ongoing research and business development activities," said Syntopix.

Syntopix has three core compounds under development, plus a library of more than 2,200 compounds. However, its compounds are not yet commercially available.

Its SYN0126 compound made "good progress" in 2009, when a clinical study found it reduced the spot count with acne by 30 per cent. Syntopix is now in talks with several major healthcare companies following this success.

The firm said second lead compound, SYN1113, is more potent than the world's leading acne treatment. A natural compound derived from lichen, Syntopix believes it will have "huge consumer appeal".

Its third compound, SYN0017, fights the main bacterium responsible for gum disease. Syntopix wants to do proof of principle tests this year.

Directors and institutional investors IP2IPO and IP Venture Fund will buy the new shares. Syntopix said it decided not to make the placing open to all shareholders because of the cost and delay this would have added. Shareholders will vote on the placing at a meeting on March 31.