Glasgow-based DeepMatter Group plc, the AIM-listed company focusing on digitizing chemistry, on Monday announced a share placing and subscription to raise gross proceeds of £2.1 million.

The issue price for the shares represents a discount of 18.9% to the closing price of 1.85p on July 10, 2020.

“The placing and subscription proceeds will be used to further strengthen the group’s balance sheet and invest in sales, marketing, distribution and support, enabling it to grow market share of its DigitalGlassware technology platform and cheminformatics product lines, including ICSynth,” said DeepMatter.

“In combination with revenue estimates, the net proceeds of the placing and subscription are expected to fund the expansion plans of the company over the next 24 months.”

DeepMatter also announced it has provided DigitalGlassware to pharmaceutical giant Novartis and is “finalising a collaboration agreement with them, building on previously announced collaborations with AstraZeneca, the University of Nottingham, the University of Leeds and Cancer Research UK.”

The placing is being conducted by Canaccord Genuity.

DeepMatter CEO Mark Warne said: “Since the successful conclusion of our Pioneer Programme in 2019, we have seen a steady increase of interest in our DigitalGlassware platform, which has subsequently been accelerated by the new socially-distanced working practices in labs around the world.

“As we transition from the R&D phase into full commercialisation, with a clear focus on sales execution, this additional funding will enable us to invest in our operations so that we can capitalise on this opportunity and deliver long-term growth in shareholder value.”