BRASTER S.A. suspends FSA proceedings
BRASTER S.A – an innovative Polish company applying liquid crystal thermography in breast cancer diagnostics – requested the Financial Supervision Authority to suspend ongoing proceedings on approval of the prospectus. The decision has been taken in connection with an inadequately low – in the eyes of the Board – stock price in relation to the company’s potential. In August this year BRASTER S.A. received increased co-financing from the Polish Agency for Enterprise Development (PAED), which together with funds acquired from the spring E series share issue and remaining planned co-financing (NCBiR) will facilitate the implementation of business initiatives approved in the strategy for the company’s development and bring closer the introduction of the Tester device to selected reference markets in the second half of 2016.
At the same time the company announced that its plans on public issue and moving the listing of BRASTER shares to the main floor of the Warsaw Stock Exchange in the near future remain unchanged.
“The price of BRASTER shares is now at a highly unsatisfactory level and in our view the present market capitalization of the company is far from its fundamental value. We feel this is a temporary situation and that the true potential of the company will be soon verified by the market. This will be the time when we relaunch the proceedings before the Financial Supervision Authority,” comments Krzysztof Pawelczyk, President of the Board of BRASTER S.A.
BRASTER S.A. diversifies its sources of financing, thus suspension of the prospectus proceedings before the FSA should not influence its envisaged business objectives. In spring this year the company issued 0.5 million E series shares, acquiring more than PLN 6.5 million from investors. These funds, together with financing acquired from PAED and other expected co-financing, will make it possible for the company to continue uninterrupted operations and return to the plans of increasing the company’s capital in future.
“We care about our investors. We do not want their capital to be diluted because of undervaluation of the company, which in our view is temporary. Thanks to activities undertaken earlier, our financial situation is now stable, which facilitates uninterrupted implementation of planned strategic projects. We carry on with our efforts and together with investors we await improvement of the market situation. In line with earlier declarations, we maintain our objective of introducing the Tester device to physicians’ offices in selected reference markets in the second half of 2016,” adds Pawelczyk.