LONDON (Alliance News) - Tiziana Life Sciences PLC Tuesday said it has raised GBP6.1 million by issuing 88 million of unsecured convertible loan notes to new investors, money it will combine with the GBP2.6 million it raised in a share placing last month to fund the development of its clinical stage assets milciclib and foralumab.
The clinical stage biotechnology company focused on targeted drugs to treat diseases in oncology and immunology said it will also use the funds to meet its ongoing liabilities in respect of licence agreements, and for general working capital purposes.
The convertible loan notes are are redeemable by the noteholders at any time after June 25, 2016, and will be redeemed as decided by the company in cash or by conversion into new shares at a conversion price of 70 pence a share. Interest will accrue quarterly at a rate of 4% a year.
Tiziana has also issued the noteholders with warrants to subscribe for up to 1.8 million new shares in the company at an exercise price of 105 pence a share as an arrangement fee. These warrants can be exercised between June 26, 2016 and the end of 2017.
"Our total fundraising through new shares and convertible loan notes of GBP8.69 million (USD12.95 million) will allow Tiziana Life Sciences to move the exciting projects in our portfolio through to their next inflection points. These projects include the ongoing phase II clinical trials of the company's lead asset milciclib for thymic carcinoma, potential application of milciclib in breast cancer and liver cancer, and advancing foralumab, which has potential in a number of indications and markets," Chairman and founder Gabriele Cerrone said in a statement.
Tiziana shares were down 0.7% at 114.22p early Tuesday, after the stock hit a 52-week high of 119.00p earlier this week.
By Steve McGrath; stevemcgrath@alliancenews.com; @stevemcgrath1
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