LONDON (Alliance News) - Finland's Faron Pharmaceuticals Oy on Tuesday afternoon said it has raised EUR3.1 million pursuant to a placing announced earlier in the day.
The company issued 864,164 shares at 60.0 pence each, in addition to up to 3.6 million subscription shares issued at 70.2 Euro cents per share.
Shares were 6.6% higher on Tuesday afternoon at a price of 65.00 pence each.
Earlier in the day, the company said it expects further disappointing results from Traumakine, as it announced the share placing.
Faron is currently awaiting for results from a phase III trial for Traumakine in Japan, and it understands concomitant corticosteroid use was high during the tests.
As a result, it expects similar results to those achieved in Faron's own INTEREST trial last summer where Traumakine did not meet its primary endpoint.
Traumakine is a proposed treatment for acute respiratory distress syndrome.
The cash raised in the placing will be used to develop both Traumakine and its other candidate Clevegen, as well as push forward partnership on both. The fundraise would provide the company with cash up to the third quarter of 2019.
Panmure Gordon UK Ltd acted as nominated advisor, bookrunner, and broker.
Chief Executive Markku Jalkanen said: "Our staff and scientific collaborators have done a tremendous job of identifying reasons behind the unexpected INTEREST study results, as well as advancing the MATINS trial to dose escalation stage.
"This provides Faron with the opportunity to further two significant clinical programmes, which aim to help people with serious life threatening conditions like organ damage and cancer. I am also extremely happy with the level of support indicated by existing shareholders, company directors and employees in this financing round."
"We are very excited to have two clinical programmes to progress further towards effective treatments," Jalkanen added.
Faron Pharma (FARN)