(Alliance News) - Faron Pharmaceuticals Ltd on Thursday said it has successfully raised funds to support the phase two study of its bexmarilimab cancer treatment.
The Turku, Finland-based drug discovery and development company secured EUR4.8 million after conducting a placement of 3.2 million newly issued shares that will supplement a EUR3.2 million convertible loan obtained in March.
The placing was supported by both new and existing shareholders, including significant investments from the European Innovation Council alongside other Finnish and international investors.
Chief Executive Officer Markku Jalkanen said: "This fundraise will enable us to meet our immediate financing needs and continue our ambitious bexmarilimab development programme, with a focus on delivering next milestones."
Faron believes it now has sufficient working capital to cover its operations until June. However, in order to complete phase 2 of the Bexmab study and obtain regulatory feedback, the company expects it will need an additional EUR27 million.
The board has therefore proposed to issue additional shares to meet cash requirements for the remainder of the year as part of a larger long-term financing plan. The details of this are set to be agreed upon following the annual general meeting on Friday.
Faron shares were down 8.7% to 136.90 pence each in London on Thursday morning.
By Elijah Dale, Alliance News reporter
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Faron Pharma (FARN)