(Alliance News) - N4 Pharma PLC on Wednesday said it has raised GBP2 million through the placing of 50.7 million shares at GBP0.04 each.
The pharmaceutical company said the placing shares represent around 33% of its total share capital following the issue. The stock was trading 25% lower at 4.60 pence each on Wednesday afternoon in London, giving it a market capitalisation of GBP4.7 million.
N4 Pharma said the cash raised via the oversubscribed placing will be used to expand proof of concept research on its Covid-19 plasmid DNA project, increase the manufacture of its Nuvec nanoparticle for further collaboration with partners, and for working capital purposes.
Earlier in March, the company said it intends to evaluate the use of Nuvec as a Covid-19 vaccine delivery system. Nuvec is N4 Pharma's delivery system for vaccines and cancer treatment and has been shown in studies to stimulate an immune response.
"We are delighted with the support for the company through the placing in challenging market conditions. We continue to demonstrate the potential Nuvec has as a delivery system for nucleic acids. The current focus on Covid-19 highlights how important delivery systems are for developing successful vaccines. The funds raised will allow us to accelerate work to aid our commercial discussions to license Nuvec," said Chief Executive Nigel Theobald.
Following admission of the new shares, N4 Pharma will have 152.2 million shares in issue.
By Ife Taiwo; ifetaiwo@alliancenews.com
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N4 Pharma Plc (N4P)