(Alliance News) - Verona Pharma PLC on Friday said it has raised USD200 million in an oversubscribed private share placement and subscription.
The fundraise comprises a private placement of 39.1 million American Depositary shares, each representing eight ordinary shares, at USD4.50 per ADS, and 43.1 million ordinary shares at the same issue price. Net proceeds of the financing is expected to total USD183 million, after deducting placement agent fees and estimated expenses.
The issue price represents a discount of 4.7% to USD4.72 per ADS price on Wednesday.
Verona shares in London surged 48% to 69.00 pence each on Friday morning.
The clinical-stage biopharmaceutical company focused on respiratory diseases said it will use the proceeds to fund its phase 3 clinical program - Ensifentrine as a novel inhaled nebulized COPD therapy - in chronic obstructive pulmonary disease and for general corporate purposes. The trials are planned to start later in 2020.
Verona Pharma President & Chief Executive David Zaccardelli said: "With this financing we plan to initiate our Phase 3 ENHANCE clinical trials later this year and expect to support our programs into 2023. This important milestone brings us closer to our goal of ensuring ensifentrine is available for millions of COPD patients who urgently need additional treatment options."
As part of the fundraise, certain directors and senior managers subscribed for new ADS worth USD955,000 in total.
Chair David Ebsworth bought USD125,000 worth of ADS, CEO Zaccardelli acquired USD250,000 in ADS and Chief Financial Officer Mark Hahn bought USD100,000. In addition, directors Vikas Sinha, Anders Ullman and Martin Edwards each bought USD300,000 USD150,000 and USD150,000 worth of ADS in Verona.
By Tapan Panchal; tapanpanchal@alliancenews.com
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