ImmuPharma PLC - specialist drug discovery and development company - Intends to raise GBP1.1 million through the placing and subscription of 21.8 million shares at a price of 5.0 pence per share.
Issue price reflects a 21% discount to the closing price of 6.36 pence on Tuesday.
There is also a broker option to raise an additional GBP1.3 million.
Proceeds from the fundraise will go towards investment into the company's R&D pipeline, and general working capital.
"We are entering a transitional period for ImmuPharma, as we await final guidance from the FDA, prior to commencing the new international phase three clinical trial of Lupuzor with our partner, Avion Pharmaceuticals. In addition to this, as a team, we remain committed to reaching other key milestones over the next period," said Chair and CEO Tim McCarthy.
"I would like to thank Lanstead, our largest shareholder, for their involvement in this fundraising, which will allow us to further invest in our product portfolio. Moving forward we remain focused on creating a robust and successful company that, with a diversity of assets, will build future value for our shareholders," McCarthy added.
Current stock price: 5.70 pence, down 10% on Wednesday
12-month change: down 31%
By Dayo Laniyan; dayolaniyan@alliancenews.com
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Immupharma (IMM)