The company said it had raised the funds through the placing of around 1.6mln new shares at a price of 17p each, a 24% discount to its closing price on Tuesday.
READ: Braveheart says Kirkstall subsidiary to collaborate with animal charity for coronavirus research
Braveheart said the new funds will allow it to “continue to provide additional financial investment” into its portfolio firms, namely Paraytec, Pharm 2 Farm, Kirkstall, Gyrometric Systems, Phasefocus Holdings and Sentinel Medical.
The group added that both new and existing investors had subscribed during the placing.
“We are delighted to have been able to raise this extra funding and to have also increased our shareholder base. The balance sheet of Braveheart remains strong and so we will be able to provide financial support to our Strategic Investments if it is required to keep up their momentum in development”, Braveheart chief executive Trevor Brown said in a statement.
Shares in the company were 12.4% lower at 19.7p in early deals on Wednesday.