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(Alliance News) - N4 Pharma PLC shares plummeted on Friday, after it raised GBP1.0 million through a placing of 50.0 million shares and announced a broker offer to raise up to GBP1.0 million.
N4 Pharma is a Derby, England-based pharmaceutical company focused on developing Nuvec, a delivery system for vaccines and cancer treatments.
The issue price of the broker and placing offer, which will be ran through Turner Pope Investments Ltd, is 2 pence per new ordinary share. This represents a 29% discount to the shares closing price of 2.80p on Thursday, being the last business day before the announcement.
Its shares were down 28% to 2.02 pence each in London on Friday morning.
N4 Pharma said the broker offer has an initial expected value of GBP250,000 but may be extended to GBP1.0 million if it is oversubscribed. Therefore the maximum number of broker offer shares to be issued at the issue price is 50.0 million.
It added that the broker offer will remain open until market close on Monday.
The company also said on Friday that it has raised GBP1.0 million through a placing of 50.0 million shares at the issue price.
It explained that the proceeds will be used to progress N4 Pharma's development work relating to the loading of SiRNA onto Nuvec, including to commit to doing in-vivo studies and also to explore acquisition opportunities.
Chief Executive Nigel Theobald said: "The additional funding raised provides sufficient working capital for our Nuvec program into 2024 and will enable us to do more in vivo development work on double loaded SiRNA on Nuvec and begin business development on this opportunity. Alongside this, we will undertake further research to support our patent application on the use of Nuvec to improve the efficiency of viral vectors and start business development activities in this area."
By Sophie Rose; sophierose@alliancenews.com
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