(Alliance News) - Tiziana Life Sciences PLC said Friday it raised GBP1.4 million through the issue of convertible unsecured loan notes to fund working capital needs.
Tiziana had originally intended to raise funds through the issue of its Nasdaq-listed shares.
"However, the directors decided that given current market conditions, such an equity fundraise would be on dilutive terms which would be punitive to existing shareholders particularly in light of the recent positive news from the company's scientific programs," Tiziana said in a statement. "Accordingly, the company has decided to raise convertible debt finance from supportive existing shareholders."
The convertible notes will carry a 16% per year interest coupon and will be convertible at a price of 42 pence each. Shares in Tiziana closed untraded at 47.00 pence in London on Friday.
Tiziana emphasised the notes were only expected to be "short-term" financial instruments.
In addition, each convertible loan note comes with a warrant to purchase another share at 42p each anytime over the next five years.
By Ahren Lester; ahrenlester@alliancenews.com
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