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LONDON (Alliance News) - ImmuPharma PLC said on Friday it is seeking to raise at least GBP7.5 million through a placing and subscription to finance a trial for its Lupuzor product.
ImmuPharma, a specialist drug development company, said it will issue no fewer than 11.8 million shares at 26 pence per share, to raise at least GBP3.1 million, in an accelerated bookbuild.
In a separate agreement, ImmuPharma set out a subscription deal with Lanstead Capital LP to raise GBP4.4 million through the subscription of 17.0 million new shares at 10p per share. Of this, the company said it will retain GBP660,000. The remaining GBP3.76 million is to be pledged to Lanstead via a sharing agreement, with ImmuPharma entitled to receive the money over a period of 18 months, with the amount depending on the movement of ImmuPharma's shares.
"The sharing agreement provides the opportunity for the company to benefit from positive future share price performance," Immupharma said.
The fundraising proceeds are earmarked for the Phase III clinical trial of the ImmuPharma's Lupuzor product, which the company is developing to target autoimmune disease Lupus. It will also fund ImmuPharma's working capital requirements through to 2018.
"With the pivotal Phase III trial having commenced, the proceeds of the placing and subscription provide us with the necessary funding to complete this trial," said Chairman Tim McCarthy.
"We are confident that throughout this year and the next, further value enhancing news-flow will be announced on the progress of our Lupuzor Phase III trial with top line results at the end of 2017, as well providing updates on the development of our earlier stage pipeline. We look forward to updating the market on the successful completion of the placing in the near future," he added.
ImmuPharma shares were down 6.9% at 27.00 pence on Friday morning.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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