(Alliance News) - Mereo BioPharma Group PLC on Wednesday said it has secured USD3 million from a new US-based institutional healthcare investor.
The company said that the investor will purchase 12.3 million Mereo shares at a price equivalent to 18.8 pence each pursuant a securities purchase agreement. No specific details of the institutional investor was disclosed by Mereo.
The purchase price represents a 20% discount over Mereo's closing share price of 23.5p on London's AIM market on Tuesday. On Wednesday, Mereo shares were trading 2.1% higher at 23.99p each, giving it a market capitalisation of GBP26.9 million.
London-headquartered Mereo said it intends to use the net proceeds from the private offering for general corporate purposes, including clinical trial activity and working capital.
Following the admission, Mereo will have 124.5 million shares in issue.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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