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(Alliance News) - Shield Therapeutics PLC on Thursday announced steps to improve its financial situation, as it revealed a slightly reduced loss in the first half of 2023.
Shield confirmed the subscription and placing portion of an equity raise was completed on Thursday, bringing in USD6.1 million, equivalent to the GBP5.0 million, from the issue of 62.4 million new shares at 8.0 pence each. The new shares are equivalent to 8.0% of existing equity.
Of this total, 41.4 million shares were placed by Peel Hunt and Cavendish Capital Markets, while 21.0 million shares were subscribed by dominant shareholder AOP Health International Management AG.
AOP's holding already was over 40%. It made a mandatory offer for all of Shield shares back in May, but this lapsed in June.
AOP also exercised warrants for a further 5.1 million new shares at a price of 6.75p.
Shield shares were down 22% at 7.60p in London on Thursday afternoon.
Shield additionally launched an offer of shares at the placing price to retail investors via the REX platform. This could raise an another GBP1.1 million.
At the same time, Shield said it has secured a USD20 million senior secured debt facility from SWK Holdings Corp, a Dallas, Texas-based provider of finance to the healthcare and life science sectors.
Shield said it will use funds from the equity raise and debt facility to invest in its US commercial activities "with the goal to accelerate the launch curve and increase the net sales price for Accrufer", its lead iron deficiency treatment. Shield also will repay the remaining USD5.7 million on an existing loan.
Pretax loss in the six months that ended June 30 was USD11.8 million, narrowed from USD14.7 million a year before, as revenue grew by 66% to USD4.3 million from USD2.6 million. Shield also booked USD4.3 million in other operating income in the recent period, compared to no such income a year before. This represented a previously deferred upfront payment from Viatris Inc, Shield's US sales partner.
"I am pleased to report that Shield has had an excellent first half of 2023," said Chief Executive Officer Greg Madison. "We successfully initiated the Accrufer commercial partnership with Viatris, completed the build out of the combined team and effectively implemented our new commercial growth strategy and marketing campaign."
By Tom Waite, Alliance News editor
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