ValiRx Share News (VAL)

(Sharecast News) - Clinical stage biotechnology company ValiRx announced on Wednesday that it has conditionally raised ?0.2m gross through the issue of 5,714,288 new ordinary shares at a post-reorganisation price of 3.5p each, with new investors.
The AIM-traded firm said the placing was conditional on the passing of a resolution around share capital reorganisation, as it set out in a circular posted to shareholders on 6 March, convening a meeting on 25 March.

That meeting was adjourned on 25 March.

ValiRx also announced the appointment of Peterhouse Capital as its sole broker, and the proposed appointment of Martin Lampshire as a non-executive director.

The conditional placing was conducted on behalf of the company by Peterhouse.

It said the placing shares would be issued under existing shareholder authorities, and not dependent upon resolutions of the capital reorganisation meeting being passed.

Following the issue of the placing shares, the company would have no further existing authority to issue new shares.

"Assuming the passing of [the first] resolution at the capital reorganisation general meeting, the placing shares will represent 5,714,288 post reorganisation ordinary shares, representing circa 31.8% of the Company's so enlarged issued share capital," the board said in its statement.

"The board intends to shortly reconvene the capital reorganisation general meeting, [and] a further announcement will be made shortly."

At 1239 BST, shares in ValiRx were down 12% at 0.035p.