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12 June 2024

Belluscura plc

("Belluscura" or the "Company")

Trading update and proposed placing

LONDON, U.K. and PLANO, TX, U.S. (12 June 2024). Belluscura plc (AIM:BELL), a leading medical device developer focused on lightweight and portable oxygen enrichment technology, is pleased to update Shareholders regarding progress made since the start of the year and to inform Shareholders that the Company is proposing to conduct a fundraising by way of a conditional placing of convertible loan notes (the "Convertible Loan Notes") to raise net proceeds of up to £2.4 million (the "Placing").

Trading update

Studies continue to support the use of lightweight portable oxygen concentrators to treat patients with chronic respiratory failure.  A recent study⁽¹⁾ published on 1 June 2024 carries an analysis of over 240,000 patients in the French National Health Claims Database.  The study revealed that the use of portable oxygen concentrators, either alone or in combination with other oxygen delivery devices, was cost effective and associated with improved survival, compared to the other stationary oxygen concentrators, oxygen cylinders, or liquid oxygen delivery devices used as a sole treatment modality.

The Company has made significant progress in recent months.  Sales of the X-PLOR portable oxygen concentrator in the U.S. in the three months to May 2024 were $820,000, monthly sales having doubled over this period.  The Company achieved sales of $450,000 in May 2024, its highest recorded monthly sales figure, across both D2C and B2B channels.  The Board anticipates demand for the X-PLOR to remain strong through the remainder of 2024.

The Board is also pleased to announce that testing and validation of the DISCOV-R portable oxygen concentrator continues in line with previously announced plans, remaining on schedule to ship product this month. Interest in DISCOV-R remains very strong. As stated previously, initial sales will be through the Company's D2C sales platform with B2B sales beginning in late Q3.

Sales in China continue to grow, with X-PLOR sales of over $200,000 in May 2024.

As at 31 May 2024 the Company's (unaudited) cash balances were $1.1 million.

The Company confirms that its audited results for the year ended 31 December 2023 are expected to be announced on or before 28 June 2024.

Convertible Loan Note Issue

Final terms of the Placing are yet to be agreed, however it is anticipated that the Convertible Loan Notes will be redeemable after five years with a cash coupon of 7 per cent. per annum.  The Convertible Loan Notes will be convertible into Belluscura ordinary shares of 1 penny each on terms yet to be finalised.  The Placing will be conditional upon approval by Shareholders at a general meeting of Shareholders to be convened to obtain authority for the Company to issue the Convertible Loan Notes on a non pre-emptive basis under the Companies Act 2006..

The Convertible Loan Notes will not be admitted to trading on any stock exchange.

The Company has received expressions of interest to participate in the Placing from various interested potential investors.  Certain of the Directors have also expressed an interest in participating in the Placing.

The Placing will be undertaken by Dowgate Capital Limited on behalf of the Company.

An announcement containing further details of the Convertible Loan Note Instrument and the terms of the Placing will be issued shortly.

Adam Reynolds, Chairman, commented:

"The Group has made significant progress in recent months, culminating in record sales for X-PLOR in May 2024.

"The proposed fundraise will provide the Group with the flexibility to capitalise on the strong anticipated demand for X-PLOR through the remainder of 2024 and the considerable interest in DISCOV-R, which is expected to start shipping this month."

Patrick J Strollo, Jr MD, Chief Medical Officer and Director of Belluscura plc, commented:

"At less than four pounds in weight, the X-PLOR POC facilitates mobility and improves quality of life in oxygen dependent patients. 

"The recent French study provides further support that small, lightweight, oxygen concentrators are cost effective and improve survival in vulnerable patients with chronic respiratory failure." 

(1)   Glezer, S., Mercier, G., Coursier, JM. et al.  Health and Economic Impact of Different Long-Term Oxygen Therapeutic Strategies in Patients with Chronic Respiratory Failure: A French Nationwide Health Claims Database (SNDS) Study. Pulm Ther (2024). https://doi.org/10.1007/s41030-024-00259-x

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