Dublin-based medical technology group Alltracel plans to raise about £1.1 million (€1.6 million) through the sale of 10 million new shares to fund additional research into its cardiovascular health trials.

The company, which focuses on wound care, oral care and the cardiovascular healthcare market, said yesterday it will sell the new shares at 11 pence each.

This is a 12 per cent discount to the stock's closing price on Friday.

The placing is being organised by Investec and the shares will start trading on London's AIM on January 26th.

In a statement on its website, Alltracel said the net proceeds of the share placing will be used to fund an expanded cardiovascular health clinical programme in co-operation with commercial partners and for general working capital purposes.

Earlier this month the company announced record fourth quarter sales of €5.7 million and full year sales of €19.2 million, in line with the lower end of analysts' expectations.

Speaking at that time, Tony Richardson, Alltracel's chief executive, said the company had entered 2006 in a good position to achieve its first profitable year from continued revenue growth and improved cost controls.