(Alliance News) - Faron Pharmaceuticals Ltd shares declined on Friday, after it said it has raised EUR8.4 million from a share placing.
The Turku, Finland-based clinical-stage biopharmaceutical company first had announced the private placement to raise around EUR8 million through an accelerated bookbuild on Thursday.
On Friday, the company said it has raised EUR8.4 million from the placing. It issued over 4.5 million shares at a price of EUR1.85 each.
Shares in the company were down 8.6% to 160.00 pence each in London on Friday morning.
The company plans to use the proceed for the acceleration of the bexmarilimab clinical development programme and manufacturing. Bexmarilimab is a cancer-focused antibody.
Some of the proceeds also will be used to expand manufacturing capabilities, to support general corporate purposes, and to strengthen the company's balance sheet, Faron said.
It added that with these funds, the company has "sufficient" working capital until the first quarter of 2023.
Chief Financial Officer Toni Hanninen said: "These funds allow us to accelerate our bexmarilimab pipeline further, including the continuation of our Bexmab study, preparation for the Matins FDA EOP (end of phase) meeting and the initiation of our Bexcombo study in 2023. Additionally, we are further strengthening our presence and building the team in the US as previously communicated."
By Sophie Rose; sophierose@alliancenews.com
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Faron Pharma (FARN)