(Alliance News) - ValiRx PLC on Thursday said it raised GBP300,000 via subscription for working capital and to progress the clinical trial of its VALL201 cancer drug.
Shares in ValiRx dropped a steep 31% to 0.21 pence in morning trade.
The clinical stage biotechnology company raised the GBP300,000 via the issue of 150,000 shares at 0.2 pence each. The money will be used for "immediate general working capital needs" as well as for the phase 1/2 clinical trial of VAL201, which is intended to treat prostate cancer and "associated metastatic conditions".
Placing proceeds will also help with the development of ValiRx's pre-clinical programmes, Val301 and VAL101, toward the clinic.
In addition to the GBP300,000 from the placing, ValiRx is also expecting proceeds of around GBP150,000 from the sale of an unlisted security as well as a GBP400,000 research and development tax credit from HM Revenue & Customs in July.
Novum Securities Ltd was ValiRx's broker for the placing, and the fee arrangement includes the issues of warrants over 7.5 million shares in ValiRx to Novum, which have an exercise price of 0.2p per share until three years after the warrant issue.
Following admission, ValiRx's enlarged share capital will be 902.6 million shares.
On Monday, ValiRx said it was in advanced discussions with European High Growth Opportunities SF to terminate a subscription agreement. No definitive agreement has yet been made, but ValiRx expects to pay no more than GBP150,000 to European High Growth Opportunities SF to terminate the agreement.