(Alliance News) - 4D Pharma PLC on Friday said it was seeking shareholder approval for a USD15.0 million cash raise, as it works to lift its suspension and restore its shares to trading.
The Leeds-based pharmaceutical firm was placed into administration on June 24, 2022, with James Clark and David Pike of Interpath Advisory appointed as joint administrators.
On the same day, trading of the company's ordinary shares on AIM was suspended.
4D Pharma was placed in administration by Oxford Finance, who held approximately USD13.2 million of secured debt against its assets.
On October 7, this debt was acquired by Armistice, a US-based specialist healthcare investor, with a view to converting the debt into equity alongside an equity investment to bring the company out of administration.
As an intermediate step towards exiting administration and resuming trading, Armistice offered 4D Pharma a financing package.
Under the terms of the package, both companies have signed off on an amendment to the loan agreement, which made a further USD1.6 million available to 4D Pharma.
A new subordinated loan agreement allows for an additional USD600,000 to be made available to the company, while the deal also accounts for an equity fundraising totalling up to USD15.0 million.
In order to access the financing package, 4D Pharma is required to convene and hold a general meeting.
4D Pharma said it would be required to cease trading or liquidate without the approval of the finance package.
4D Pharma shares were last traded at 16.66 pence in London on November 8, 2022.
By Holly Beveridge; Alliance News reporter
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