LONDON (Alliance News) - ValiRx PLC on Friday said it has extended the deadline to enter into a new convertible bond with European High Growth Opportunities SF to July 1.
The cancer treatment-focused life sciences company's previous deadline was June 21. The extension has been agreed to allow time to both parties to agree the terms of the facility.
"The company's working capital position is dependent on new funds being made available to it. The company anticipates that the investor will provide it with additional funds which will be used to drive its clinical and pre-clinical assets to completion," ValiRx said.
On Tuesday, ValiRx entered talks with EHGO to terminate the subscription the pair agreed to at the end of April and ink the new facility.
ValiRx entered into a GBP1.3 million subscription agreement with the investor, with tranche one being completed on May following the admission of 71.0 million ValiRx shares - raising GBP333,333.
Tranche two of the shares was expected to be admitted last Tuesday but this had been delayed. ValiRx said that, due to the delay, certain aspects of the subscription agreement were under discussion.
As a result, it entered discussions with the same investor to end the entire subscription, including what was already paid, and enter into a new convertible bond facility.
ValiRx shares were trading 18% higher at 0.26 pence each midday Friday