(Alliance News) - Faron Pharmaceuticals Oy on Monday announced a EUR1.1 million subscription and EUR2.0 million open offer to fund the clinical development of cancer drug Clevegen.
Shares in Faron were down 4.4% at 114.26 pence in mid day trading.
The subscription funds will be raised through the issue of 941,840 new shares priced at EUR1.19 each. Qualifying shareholders will also be able to participate in the placing at an equivalent sterling price of 106 pence sterling per share.
Moreover, the open offer will consist of 1.7 million new shares on the basis of two open offer shares for every 45 existing shares held by qualifying shareholders. Shareholder can also subscribe for additional open offer share above their entitlement via "an excess entitlement application facility".
Proceeds will be used to fund Clevegen's clinical development and specifically the completion of part one of the Matins trial, aimed at determining a maximum tolerated dose, and part two optimal dose determination.
Proceeds will also be used to begin expanding the study cohort to include colorectal cancer patients in the fourth quarter.
The funds are also planned to be used for working capital during Faron's negotiation and signing of a licence agreement over Clevegen in the second half of 2019 and to commercialise preparation of drug Traumakine through scientific advice and regulatory approval for the Caliber study, also in the second half.
Overall, subscription proceeds are to extend working capital to the end of 2019 and the capital raising, including the open offer, is to provide working capital early into the first 2020 quarter.
Faron is looking to secure an upfront payment to partner Clevegen and this is hoped to occur before the end of the year.
Faron Pharma (FARN)