Wednesday 01 December 2021 4:44 pm  |  Updated:  Wednesday 01 December 2021 4:45 pm

Covid-19 test maker Abingdon Health shares dive over 27 per cent as it plots placing

By: Millie Turner

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Covid-19 test maker Abingdon Health had its share price plunge today after it confirmed it would shed a hoard of shares.

Shares sank more than 27 per cent by market close, to 27.5p per share.

Abingdon had proposed a placing of around 14.8m shares at 25p per share, in a bid to raise some £3.7m in funds.

The London-listed lateral flow manufacturer added that the this could be increased to 22.8m shares, which would pull in around £5.7m.

The company plans on using the proceeds to make up for a capital shortfall which it expects in the first quarter of 2022, Abingdon said in a regulatory filing today.

Alongside the placing, shareholders intend to subscribe for 1.2m new ordinary shares to raise another £300,000. The placing and the subscription combined will raise around £4m for the firm.

The unlocked funds will also be pumped into product research, as it looks to branch into Flu testing, Hepatitis C and Lyme disease – alongside the Coronavirus.

York headquartered Abingdon entered a partnership with fellow manufacturer BioSure UK earlier this year, to produce at-home Covid-19 antibody test kits.