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LONDON (Alliance News) - Shares in Futura Medical PLC plunged on Friday after it said that it raised GBP5.6 million via a share placing, subscription and an open offer at a discounted price.
The company placed 80 million shares at 7 pence, a 28% discount to the closing price of 9.65p on Thursday. The new shares represent 37% of the company's enlarged share capital.
Shares were trading down 27% at 7.00p, on Friday.
On Thursday, Futura had said it would raise GBP6 million via an accelerated bookbuild and open offer, so it missed this mark by GBP400,000. The company had said it would issue at least 71.4 million shares.
The pharmaceutical company said it would use the proceeds from the placing to fund its topical erectile dysfunction gel through to a phase three trial.
The funds are also expected to allow more headroom in a long-term open label arm of the study, and to allow a second phase three trial to take place.
Three of the company's directors participated in the fundraising.
Chief Executive Officer James Barder subscribed for 357,142 shares taking its total stake to 0.9%.
Finance Director & Chief Operating Officer took up 142,857 shares raising its total holding to 0.07% and Head of Research & Development Ken James subscribed for 285,714 shares. He now holds 0.14% stake in the firm.
