Shield Therapeutics to raise USD10.0 million via AOP subscription

(Alliance News) - Shield Therapeutics PLC on Friday said it intends to raise USD10.0 million via a share subscription, and launched a retail offer to raise a further GBP1.0 million.

The Newcastle, England-based commercial-stage pharmaceutical company said it has entered into a subscription agreement with AOP Health International Management AG for over 256.4 million new shares priced at 3.00 pence each.

The company is also offering just over 33.3 million shares at 3.00 pence each in a retail offer, with maximum proceeds of GBP1.0 million, conditional on the completion of the subscription offer. This is at a premium of 5.3% to the December 5 close price.

Shield Therapeutics said AOP will only proceed with an equity investment if it obtains a controlling interest as a result. This would require approval from shareholders at a general meeting.

The company warned that if this investment is not approved, it will not receive the funding which would be used to help the company achieve its target of becoming cash flow positive by the end of 2025.

Shield Therapeutics also said that AOP has confirmed it is not prepared to make an offer for the company, which is usually required in these circumstances. The panel has agreed to waive this requirement if it is passed at the general meeting.

The retail offer is expected to close on December 20.

Shares in Shield Therapeutics were up 2.9% to 2.93 pence each in London on Friday afternoon.

By Michael Hennessey, Alliance News reporter

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