LONDON (Alliance News) - Verona Pharma PLC on Friday said it will raise GBP44.7 million through a share placing, with shares to be placed at 2.876 pence per share and funds to be used for a clinical trial of its RPL554 drug, as well as for additional Phase 2 studies.
Shares in Verona Pharma closed up 2.7% at 2.90p on Friday.
The respiratory drug development company said it has secured funding commitments to raise the proceeds, through a conditional placing with new and existing investors, including with a number of specialist US, UK and European healthcare funds.
It will raise the proceeds through the issue of 1.56 billion units at a price of 2.873p per unit, Verona Pharma said, with one unit comprising of one placing share and one warrant.
The company said it will use the proceeds to progress its RPL554 drug through a Phase 2b clinical trial in chronic obstructive pulmonary disease patients, and to fund additional clinical Phase 2 studies in chronic obstructive pulmonary disease and cystic fibrosis as well as further supportive pre-clinical work.
N+1 Singer is acting as the broker and nominated advisor in connection with the placing.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
Copyright 2016 Alliance News Limited. All Rights Reserved.