(Alliance News) - Immupharma PLC said Wednesday it raised GBP6.5 million from an oversubscribed placing.
Immupharma placed 59.1 million new shares at 11 pence each. Shares in the specialist drug discovery and development company were down 18% in Wednesday mid-morning at 13.26p each.
The placing shares represent about 24% of the company's enlarged share issue.
On top of the placing, Immupharma has issued warrants over 1.2 million shares with an exercise price of 11p Stanford Capital Partners and the same deal with SI Capital.
Following admission of the placing shares, Immupharma will have 242.8 million shares in issue.
Chair Tim McCarthy said: "In response to strong investor demand, this successful and over-subscribed fundraising has brought together new and returning institutional investors, with existing and new private investors."
Immupharma is planning to progress its therapeutic pipeline including one of its new developments, BioAMP-B, a novel peptide-based drug that offers a potential treatment for many serious and life threatening fungal infections.
Taking into account existing cash resources and the expected net proceeds, the company expects to have sufficient cash resources to fund operations through the end of 2023.
"With a strong balance sheet, a diverse and exciting therapeutic pipeline and our lead drug candidate, Lupuzor moving forward into an international Phase III trial, ImmuPharma is in an extremely robust position. With value enhancing news-flow over the next period, we are confident of creating long term shareholder value for all of our shareholders," McCarthy added.
By Paul McGowan; paulmcgowan@alliancenews.com
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Immupharma (IMM)