A SHARE placing has raised £1 million for a York company as works to develop products to tackle obesity, high cholesterol and diabetes.

Optibiotix, based at York Science Park, raised the six figure-sum, pre-expenses, through a placing of 1,282,051 shares on Friday.

Stephen O'Hara, chief executive of OptiBiotix, said: "The funds will be used to further accelerate our development programmes to capitalise on the growing number of opportunities arising in the rapidly evolving microbiome space and build shareholder value."

The placing shares were issued to funds managed by Seneca Partners Limited, a wealth manager and existing institutional investor in OptiBiotix.

Following the Placing, Seneca's beneficial shareholding in the company is 5,537,051 ordinary shares, representing 7.13 per cent. of the company's issued share capital.

Mr O'Hara added: "We are delighted that Seneca, as a major shareholder and respected wealth manager, have increased their stake in OptiBiotix."

Application will be made to the London Stock Exchange to admit the placing shares to trading on AIM (the alternative investment market). Admission of the shares is expected to occur on or around February 11.

OptiBiotix was formed in March 2012 to develop compounds which modify the human microbiome - the collective genome of the microbes in the body - to prevent and manage human disease.

It has since established a pipeline of microbiome modulators that can impact on lipid and cholesterol management, energy harvest and appetite suppression.

In December last year the company, which floated in August 2014, raised £1.5 million through a share placing of 2 million shares.