LONDON (Alliance News) - ValiRx PLC on Wednesday said it is in advanced discussions with European High Growth Opportunities SF to enter a new convertible bond facility and is planning an open offer.
Shares in the cancer-focused biotechnology company were up 8.0% at 0.46 pence in morning trade.
The company will be holding its annual general meeting on June 28 where it will seek authority to allot share capital. ValiRx will then use some of that authority "to facilitate, at an appropriate time, an open offer, expected to be two new shares for every ten existing shares held".
ValiRx on Friday last week said it had extended the deadline for the new convertible bond and termination of a previously announced subscription agreement. As yet, negotiation is ongoing between the two companies with "no definitive documents" entered into.
"The company expects to notify shareholders of the details of the new facility in due course, which, like the current deal, is expected to oblige the company to issue convertible bonds and certain warrants to the investor," said ValiRx.
A separate general meeting will be called once the binding terms are finalised so that shareholder approval for the new facility can be granted.
ValiRx repeated the statement it made on Friday last week that its working capital position depends on new funding, and it expects European High Growth Opportunities SF to provide additional short-term funds under existing authorities for used in clinical and pre-clinical asset development.