LONDON (Alliance News) - Redx Pharma PLC, an AIM-listed drug discovery and development company, on Thursday said it is raising GBP10.0 million by selling shares to new and existing investors, with the money to progress the drug discovery and development company's pipeline.
In a statement, Redx Pharma said 28.6 million shares are being placed at 35.00 pence per share. The stock was down 12% at 38.20p on Thursday afternoon. The placing will comprise a firm placing of up to 6.2 million EIS shares and a conditional placing of up to 22.4 million shares.
The EIS shares are being issued under existing authorities granted to the company by shareholders. The second, conditional placing requires shareholder approval.
The use of the proceeds will include advancing the company's Porcupine program towards first-in-human clinical trials, expected in the first quarter of 2017. The funds will be used to further develop Redx's other assets in immuno-oncology, infection and immunology. In addition, the net proceeds will strengthen the company's balance sheet.
"We have made excellent progress in the last 12 months especially with our drug discovery programs, having achieved in-vivo proof of concept in a further three programs and selecting four drug candidates for progression into development. These new funds will support Redx's continuing progress and our existing pipeline. We believe that the assets in our pipeline look extremely promising and offer the potential to deliver significant shareholder value," Chief Executive Neil Murray said in a statement.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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