LONDON (Alliance News) - Diurnal Group PLC said Tuesday it has raised around GBP5.4 million via a 20.6 million share placing priced at 26 pence per share and announced an open offer to raise up to approximately another GBP1.0 million.
Shares in Diurnal were down 9.7% at 28.00p in morning trade, with the placing price representing a 16% discount to the company's closing price on Friday last week.
Diurnal, a pharmaceutical company which focuses on chronic hormonal diseases, intends to raise the GBP1.0 million via a 3.9 million share open offer, on the basis of 1 open offer share for every 16 existing shares.
The funds raised from the placing and open offer will be used to develop and commercialise Diurnal's products. This includes the filing of a market authorisation application for Chronocort, which treats adrenal insufficiency - a condition in which a person's body does not make enough of the hormone cortisol.
Diurnal also plans to use the money to file a new drug application for Alkindi, which treats adrenal insufficiency in infants and adolescents under 18 years old, and to continue the "roll-out of Alkindi in Europe".
The funds will also be put toward licencing discussions for both Alkindi and Chrnonocort in the US and elsewhere in the world.
"Diurnal has continued to make strong progress across its business, including the successful launch of Alkindi in Europe and confirmation of the regulatory paths for Chronocort in Europe and Alkindi in the US, where regulatory submissions are planned for Q4 2019. The funds raised will allow us to progress our vision of becoming a world-leading specialty pharma company in endocrinology, in particular to support the commercial infrastructure for the further roll-out of Alkindi in Europe, paving the way for the expected future launch of Chronocort, and to secure partnerships for Alkindi and Chronocort®outside of Europe," said Diurnal Chief Executive Martin Whitaker.
Panmure Gordon UK Ltd and Cantor Fitzgerald Europe acted as joint brokers for the deal.
