Innovative unveils GBP 10m call

MEDICAL dressings minnow Innovative Technologies today unveiled details of its GBP 10 million emergency cash call as it emerged that a share issue of up to GBP 40 million would have been needed to fund an aborted acquisition.

Innovative is to pay a total of GBP 500,000 to Nomura, or 5% of the money being raised, including a 2% advisory fee and 3% for underwriting the issue.

A further GBP 400,000 will be spent on other professional fees. A spokesman said: "The group is raising money in exceptionally difficult markets that will provide enough funds for a further two years. How many other small biotech firms have managed to do that?" Innovative also lost GBP 1 million after six months working towards a proposed acquisition, which collapsed over the last few weeks after stock market turbulence upset plans to fund the deal by issuing shares. The rights issue prospectus also revealed that Geoffrey Vernon, who joined Innovative as a non-executive director in July, was formerly a director of privately owned Neurotech, which collapsed in 1990 with debts of more than GBP 700,000.

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