(Alliance News) - Faron Pharmaceuticals Oy said Thursday it will conduct a private placement, for a "limited number" of institutional investors, for 3.9 million shares.
Faron said "certain" members of the company's management will also be allowed to take part in the placement. If all 3.9 million shares are subscribed for, it will represent about 10% of Faron's issued share capital before the placing.
Carnegie Investment Bank AB will arrange the placing, which has yet to determine a price for the shares. Shares in Faron Pharmaceuticals closed 6.0% higher in London on Thursday at 220.00 pence each.
Based on Thursday's closing price, the placing could raise GBP8.7 million.
The bookbuild will begin immediately, and is expected to close at 0700 GMT. Carnegie may close it before then, however. The company has the right to extend the placing to 7.9 million shares, based on a vote at the firm's recent annual general meeting.
The proceeds will be used to advance the clinical development of the company's Clevegen product.
Chief Executive Officer Markku Jalkanen said: "Over the last couple of months we have come to realise the significance of the data generated to date from the Matins study, which has confirmed three important points: one, in Clevegen, we potentially have the first macrophage immune checkpoint drug which has promoted immune activation of all dosed patients to date; two, Clevegen is safe and well tolerated, making it a low-risk candidate for combination with existing cancer therapies; and three, Clevegen has shown early clinical benefits in patients who have exhausted all other options."
He continued: "These results open multiple new opportunities for Clevegen in combination with existing cancer therapies. The possibility to expand the Clevegen platform outside single-agent treatment has also widened Faron's approach to its commercialisation strategy for Clevegen either alone or with a partner. This proposed private placement will not only strengthen the company's resources but also strengthen its position in partnership negotiations as it explores the best outcome for the company and its shareholders."
Faron will also hope to use some of the proceeds to help its Traumakine programme, where it hopes to meet the US Food & Drug Administration in December. The company hopes this will lead to a clinical development plan for Traumakine.
By Paul McGowan; paulmcgowan@alliancenews.com
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Faron Pharma (FARN)