Sareum shares slump on widened loss and funding talks

(Alliance News) - Sareum Holdings PLC share fell on Tuesday, after it said it expects to report a widened interim loss.

Shares in the Cambridge, England-based pharmaceutical company were down 24% to 26.51 pence in London on Tuesday afternoon.

Sareum said it will publish its result the six months ended December 31 in the week beginning March 25.

It expects to report an operating loss of GBP2.5 million, widening from GBP1.7 million a year earlier.

The company explained that this reflects "the cost of continued and additional investment into clinical research conducted during the period for the furtherance of its SDC-1801 autoimmune disease programme."

It also updated markets on its equity prepayment facility with RiverFort Global Opportunities PCC Ltd.

Sareum has drawn GBP2.3 million to date from two prepayment deposits and the company currently has an outstanding balance of approximately GBP1.3 million under the facility.

Any remaining balances are not due for repayment until the maturity date in August 2025, by which all balances are expected to be settled through the issuance of placing shares.

Previously it has been announced that the facility included a committed third tranche prepayment deposit of GBP300,000.

However, it noted that "due to downward pressure on the company's share price", Sareum has been unable to draw down the third prepayment under the facility.

The company explained that it is now in discussions to assess alternative funding arrangements and has taken steps to preserve its immediate capital utilisation.

It added that, providing alternative funding is secured, the board remains confident that it is on course to deliver topline Phase 1a results in the second quarter of 2024.

By Elijah Dale, Alliance News reporter

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