Faron Pharma raises £8m to fund R&D

(ShareCast News) - AIM listed Faron Pharmaceuticals raised £8m through a share placing and subscription to fund safety trials, pre-clinical advances and various research and development operations in biopharmaceuticals.The Finland-based company raised £8m through a placing of about 2.86m shares and a subscription of 332,000 shares at 250p each, and expects to log them with the Finnish Trade Register on 21 September.The company will also place the 3.2m shares on admission to AIM on 23 September.Following admission, the company will have a 26.3m enlarged share capital with voting rights and no shares held in treasury.The proceeds raised will fund safety trials for the US development of the company's Traumakine product for the treatment of acute respiratory distress syndrome and the European clinical development of the drug to phases one and two to treat people with rupture abdominal aorta aneurysm.It will also help fund the pre-clinical and clinical development of Clevegen, a cancer immunotherapy checkpoint antibody, to phases one and two and further research and development operation expenses.Chief executive Dr Markku Jalkanen said the company received "strong demand" for the placing and subscription, which was "an encouraging sign of trust in our performance".Shares in Faron Pharmaceuticals were up 2.84% to 257.10p at 1504 BST.