Tekcapital Plc (AIM: TEK) Raises £1.0 Million to Accelerate Guident's Growth and IPO Plans

Highlights: 

• Tekcapital raises £1.0m (c.US$1.27m) in a placing and subscription from new and existing shareholders.
• Funds will support Guident Ltd's Remote Monitor and Control Centre (RMCC) deployment and planned IPO in 2025.
• CEO Dr. Clifford Gross subscribes for 342,500 new shares, increasing his stake to 4.25% of Tekcapital.

Tekcapital Plc (AIM: TEK), a UK-based intellectual property (IP) investment group, has announced the successful completion of a £1.0 million fundraise, equivalent to approximately US$1.27 million, to support the expansion of its portfolio company, Guident Ltd. This fundraise, which was conducted through a combination of a placing and subscription, will enable Tekcapital to accelerate the growth of Guident's cutting-edge technologies, particularly its Remote Monitor and Control Centre (RMCC) platform.

Guident, a key portfolio company of Tekcapital, is a pioneer in remote monitoring and control solutions, particularly in the autonomous vehicle and transportation sectors. The RMCC system is designed to enhance the safety and efficiency of autonomous vehicles by allowing real-time remote intervention in case of emergencies or technical issues. With the new capital, Guident plans to accelerate the deployment of the RMCC to its existing customer base while also targeting new clients, further solidifying its market position.

The £1.0 million raised will be allocated in several key areas, with £0.4 million earmarked specifically for the deployment and expansion of Guident’s RMCC. An additional £0.2 million will be used for the preparation of Guident’s anticipated initial public offering (IPO) in 2025, a significant milestone that could unlock further growth opportunities for the company. The remaining funds will be directed towards general working capital requirements, providing Tekcapital and its portfolio companies with the financial flexibility to pursue ongoing innovation and growth strategies.

The placing, which involved the issue of 11,724,167 new ordinary shares at a price of 7.5 pence per share, saw participation from both existing and new investors. Additionally, a subscription agreement raised an additional £0.12 million through the issuance of 1,609,167 new shares at the same price. The fundraise was managed by Tekcapital’s broker, SP Angel Corporate Finance LLP.

A notable aspect of the fundraise is the participation of Tekcapital's CEO and Chairman, Dr. Clifford Gross. As part of the fundraising, Dr. Gross subscribed for 342,500 new ordinary shares at the placing price, further increasing his holding in the company to 9,000,000 shares. This acquisition increases Dr. Gross's stake in Tekcapital to 4.25% of the enlarged issued share capital, demonstrating his continued confidence in the future growth of Tekcapital and its portfolio companies.

The fundraise also includes a related party transaction, with Dr. Gross's subscription being classified under AIM Rule 13. However, the company’s independent directors, after consulting with the nominated adviser SP Angel, have confirmed that the terms of the subscription are fair and reasonable from the perspective of Tekcapital’s shareholders.

With this funding round successfully completed, Tekcapital is well-positioned to support the ongoing development of its portfolio companies, particularly Guident, as they continue to innovate in the fields of autonomous technology and IP commercialization. The company’s focus on creating valuable, life-enhancing products remains central to its strategy, and the raised capital will play a crucial role in helping Tekcapital meet its strategic objectives in the years ahead.