(Alliance News) - Diurnal Group PLC said Friday its placing at 32 pence per share had raised GBP11.2 million, exceeding the GBP7.0 million minimum.
Earlier on Friday, Diurnal said it intended to raise up to from a placing in order to support development of drugs Alkindi and Chronocort.
The price per share was 32 pence, a 4.5% discount to pharmaceutical company Diurnal's 33.50p closing price on Thursday. Its shares closed 3.0% higher at 34.50p each in London on Friday.
In total, 34.9 million share were placed at the 32p price. Shareholder approval is still required for the placing and a circular with details of a general meeting will be posted, likely by 1800 GMT on Monday next week.
Diurnal Chief Executive Martin Whitaker said: "We are delighted to have successfully completed this fundraise, despite the challenging market conditions. The monies raised will allow us to progress further our differentiated late-stage pipeline of drugs that seek to treat patients with diseases of cortisol deficiency, as we move forward with our vision to become a world-leading specialty pharma company in endocrinology. We would like to thank our new and existing shareholders for their support."
IP Group PLC subscribed for 9.4 million placing shares, giving it a 44.1 million share stake. However, given the number of shares issued in the placing, its stake as a percentage of Diurnal shares fell to 36% from 40%.
Money raised from the placing will help Diurnal to "continue the development of the European commercial organisation and roll-out of Alkindi", its paediatric adrenal insufficiency drug.
Paediatric adrenal insufficiency is caused by a lack of the hormone cortisol. It causes chronic fatigue and can result in death if untreated.
Placing funds will also go toward beginning "market access activities for Chronocort", its congenital adrenal hyperplasia drug. Dirunal is expecting approval for Chornocort in Europe in the first quarter of 2021.
Congenital adrenal hyperplasia is a condition in which patients have a block in cortisol production. This lack of cortisol causes the over-production of male hormones, and can lead to infertility and increased mortality.
Diurnal also said the placing will improve its "balance sheet in connection with licensing discussions for Alkindi and Chronocort in the US and the rest of the world" and help progress its early-stage pipeline toward clinical trials.
This early stage pipeline includes DITEST, Diurnal's "native oral testosterone formulation".
Panmure Gordon (UK) Ltd was nominated advisor and joint broker on the placing, with Cantor Fitzgerald Europe being the other joint broker.
By Anna Farley; annafarley@alliancenews.com
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