(Alliance News) - 4D Pharma PLC on Monday said it intends to raise GBP7.7 million through the issue of 29.9 million shares at 35 pence each.
The placing price represents a 14% discount to the Friday closing price of 41.00p. Shares in the pharmaceutical company were trading 6.0% lower at 38.55p each on Monday afternoon in London, giving it a market capitalisation of GBP42.2 million.
4D Pharma said the fundraise comprises a subscription and placing conducted by way of an accelerated bookbuild with N+1 Singer and Bryan Garnier as joint brokers and bookrunners.
Some 4D directors have agreed to subscribe for 1.5 million new shares, contributing GBP510,500 total.
The new cash will be used for working capital through to February 2021, funding operations for at least four key clinical studies including 4D's MRx-4DP0004 Phase II Covid-19 trial and its MRx0518 Phase I clinical biomarker study as a neoadjuvant monotherapy in patients undergoing surgical resection of solid tumours.
The money also will be used to investigate other capital market opportunities, including options for a potential US listing.
"This funding will enable us to ensure that we have the best opportunity to build upon the exciting developments announced to date this year, deliver data from our clinical studies of multiple candidates throughout 2020 and into early 2021, and explore further potential partnerships, all of which the company expects will provide value inflection points to support the company in implementing longer term strategic financing plans," said Chief Executive Duncan Peyton.
By Ife Taiwo; ifetaiwo@alliancenews.com
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