Physiomics has completed a placing, conditional only on Admission, to raise £555,000 from the issue of 2.22bn shares at 0.025p each.
Application has been made for the new Ordinary Shares to be admitted to trading on AIM and dealing is expected to commence on 28th September 2016.
"Based on investor discussions, we decided not to proceed with the acquisition of BioMoti Limited which was announced by previous management on 31st March 2016," the company said in a statement.
"Our shareholders were more supportive of management focusing 100% of their efforts on growing the revenues and creating a path to profitability in our core modelling and simulation business at this point.
"There may be opportunities in the future to engage with BioMoti and other companies with interesting pipelines that Physiomics can optimize, and the Company remains committed to exploring these options.
"In the meantime, the proceeds of the placing will be used to conduct and accelerate business development activities related to the Company's core modelling and simulation business, in particular the clinical version of its Virtual Tumour technology which enables predictions to be made of the outcome of human trials based on pre-clinical and other data."