WideCells Group PLC Raises £750,000 to accelerate the growth of all three divisions

WideCells Group PLC (LON:WDC), the healthcare services company focused on providing stem cell services and ground-breaking insurance for stem cell treatment, has today announced that it has raised gross proceeds of £750,000 through the issue of 5,357,143 ordinary shares at 14p per share by way of a private placing (the ‘Placing’) with new and existing shareholders as well as the Board of Directors. The funds raised will be used to execute on a range of additional opportunities the Group has identified since listing in July 2016, rapidly accelerate the roll out of its three stem cell services divisions, CellPlan, WideCells and WideAcademy, and further its penetration of the rapidly growing stem cell market.

WideCells Group Plc CEO, João Andrade, said, “This is an extremely exciting phase in our development as we look to accelerate the growth of all three divisions, CellPlan, WideCells and WideAcademy, through the aggressive roll out of new and existing products and services. Our growth trajectory has been steep and we are set to continue this in the coming months as our proprietary insurance product CellPlan gains traction, the marketing of INDUS, a novel synthetic bone graft which promotes new bone formation increases, and the expansion of our stem cell bank relationships as well as our own storage capabilities expands. Furthermore, having recently been granted a research licence from the UK’s Human Tissue Authority, this cash injection will enable us to proceed with further cutting-edge stem cell research in a market that is projected to be worth US$170 billion by 2020 which is intended to help drive more revenues for the company in the future.

“We are ideally positioned to build on our position as a key service provider and leading international innovator in the stem cell arena. We recently ranked as the 21st most disruptive company globally by DISRUPT 100; I look forward to continuing in this vein, increasing revenue and rewarding shareholders for their support.”

CellPlan

With the Company’s e-commerce platform live, CellPlan can now be purchased by both new and existing customers of Biovault Technical Ltd (‘Biovault’), the UK’s largest private human tissue storage facility. The platform enables the Group to target existing customers, who can purchase its stem cell insurance product, CellPlan, direct, whilst every new Biovault customer automatically receives CellPlan for a 12-month period, the cost of which is covered by Biovault as part of its package to new storage customers. A portion of the funds raised will be used to develop the second stage of the e-commerce platform to roll out extended provider network and marketing spend to acquire more clients. Additionally, the Company intends to strengthen marketing activities to accelerate growth and uptake – both to additional cord blood storage facilities and the extended provider network.

WideCells

The Company’s first stem cell storage facility, the Institute of Stem Cell Technology at the University of Manchester Innovation Centre, has been granted a Research Licence (the ‘Licence’) from the UK’s Human Tissue Authority. This Licence, Number 12669, enables the Company to proceed with cutting-edge stem cell research at its base in Manchester and build on its position as a leading international innovator in the stem cell arena. A portion of the funds raised will be used to deliver additional storage services, including stem cells from the placenta, cord blood plasma, teeth cells and synthetic bone substitute INDUS, and to drive storage uptake.

WideAcademy

WideAcademy is focused on becoming a thought leader in stem cell technology and accordingly the Company aims to establish itself as a high-profile resource for both healthcare professionals and families alike. It aims to achieve this goal by establishing collaborations with leading multinational technology companies and reputed educational institutions and developing a website and mobile App which can deliver and distribute high quality and trustworthy information about this cutting edge and innovative industry. The funds will be used to create and develop a digital platform to facilitate distribution of content globally, accelerate WideAcademy Courseware and secure and advance partnerships with educational institutions and technology companies.

The Placing

The Placing has raised gross proceeds of £750,000 by the issue of 5,357,143 new ordinary shares of £0.0025 each in the share capital of the Company (the ‘Placing Shares’) to new and existing shareholders and Directors of the Company, at a price of 14 pence per Placing Share (the ‘Placing Price’), conditional only on Admission (as defined below).

Applications have been made for admission of the Placing Shares to listing on the Standard segment of the Official List of the UK Listing Authority and to trading on the Main Market for listed securities of the London Stock Exchange plc (‘Admission’). Admission is expected to take place on 18 August 2017.

The Placing Shares will rank pari passu in all respects with the existing ordinary shares in the share capital of the Company (including as to the right to receive dividends (and other distributions, if any) declared, made or paid by the Company after the date of issue of the Placing Shares).

Directors’ participation in the Placing

Details of the directors’ participation in the Placing are set out below: