SUMM.L Share News (SUMM)

LONDON (Alliance News) - Summit Therapeutics PLC said Tuesday that it intends to raise gross proceeds of up to GBP15.0 million via share placing.

The company expects to place up to 8.3 million new ordinary shares at 180 pence per share, a discount of 5.3% to the closing mid-market price on March 26 of 190p per share. The stock was trading 2.6% lower at 185.00 pence Tuesday afternoon.

Placing proceeds will be used by the company to accelerate preparatory activities for a placebo controlled clinical trial for ezutromid, and for a potential regulatory filing of ezutromid based on the 48-week results from the ongoing Phase 2 clinical trial called PhaseOut DMD.

Funds will also be used by the company to continue development of the company's utrophin modulator and infectious disease pipeline activities and support initiation of the Phase 3 clinical trials of ridinilazole for C. difficile infection that are planned to commence in the first quarter of 2019.

The share placing is being conducted by way of an accelerated bookbuilding process. Panmure Gordon (UK) Ltd and Nplus1 Singer Advisory LLP are acting as joint brokers and bookrunners in relation to the placing. Cairn Financial LLP is acting as adviser.

"The funds from this placing will provide us clinical and regulatory flexibility as we seek to rapidly advance ezutromid and bring this potentially transformational therapy to patients as quickly as possible," Chief Executive Glyn Edwards said.