LONDON (Alliance News) - ValiRx PLC on Monday confirmed it is in advanced discussions with European High Growth Opportunities SF to terminate a subscription agreement.
Shares in the clinical stage biotech firm were 8.1% lower at 0.29 pence on Monday.
In April, ValiRx had entered a GBP1.3 million subscription agreement with European High Growth, which would see the issue of three equal tranches of 71.0 million shares at a price of 0.6 pence per share, raising GBP426,000 per tranche.
Under the terms, European High Growth would commit convertible funds of up to GBP6.0 million with a 0% coupon. The first tranche of GBP500,000 would have been followed by 22 additional tranches of GBP250,000.
European High Growth was had an option to buy ValiRX shares equivalent to GBP1.5 million during a period of five years.
ValiRx said it no longer intends to make any other arrangements with the potential investor, which no longer has any holding in the company.
The company said that its working capital position is "dependent" on new funds being raised in a short term period, and its directors are "carefully managing" its current position.
Furthermore, ValiRx said it has arranged for the sale of its investment in an unnamed security firm, with GBP140,000 in proceeds to be received next week.
Also, the company is due to receive a GBP400,000 from HM Revenue & Customs in July, in relation to a research & development tax credit.