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(Alliance News) - Nuformix PLC said Monday has raised GBP1.3 million in a share placing.
The pharmaceutical development firm said it will issue 17.9 million shares at 7 pence each.
Shares in Nuformix closed 22% higher in London on Monday at 10.25p each.
The company will also issue 1.3 million shares to settle any expenses arising from the placing. Following the issue, the company's total share capital is now 488.9 million.
The new shares are expected to be admitted to London's Main Market on December 23.
"This tactical placing will allow the group to strengthen its overall position during negotiations in Asia for NXP002 and accelerate progress within two promising programmes following recent research results, including a new breakthrough addition to the pipeline NXP004," Nuformix explained.
Chief Executive Dan Gooding added: "NXP004 introduces a strong new candidate to our development pipeline which we believe offers significant commercial potential in multiple therapeutic areas. Furthermore, our decision to develop NXP002 as an inhaled therapy for both IPF and IPF-induced cough has resulted in changes to our development plan and offers potential commercial advantages that are attractive for both patients and future development partners.
"We believe that today's tactical and prudent fundraise will allow us to secure key new product opportunities for NXP004 and support an upscaling of our NXP002 research activities to accelerate progress on this critical programme. We welcome our new shareholders and look forward to achieving continued success across all of the current development programmes."
The placing was completed by Novum Securities.
Nuformix also said its cannabinoid development programme - in partnership with Canadian firm Ebers Tech Inc - remains on track.
" Multiple cannabinoids are currently under development using Nuformix's technology platform. Income from Ebers-related activities continues to support Nuformix's low operating costs," the company said.
By Paul McGowan; paulmcgowan@alliancenews.com
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