(Alliance News) - ValiRx PLC on Monday said it raised GBP1.2 million through the issue of 18.1 million shares at 6 pence each to help meet working capital needs and fund the close-out period of a clinical trial.
Shares in ValiRx were up 12% at 11.50p in London in afternoon trading.
The clinical stage biotechnology firm said it completed a 12.5 million share placing at 6 per share, raising GBP750,000 and also issued a broker option over 4.2 million shares raising GBP250.000.
The broker option was intended to benefit existing shareholders with option shares exercisable at the 6p per share placing price.
On top of this, ValiRx issued 1.4 million shares as the result of a liability conversion at the placing price, settling GBP84,168 worth of liabilities.
The fundraise is conditional upon shareholder approval at a general meetings and was undertaken by Peterhouse Capital Ltd, ValiRx's broker.
There are warrants attached to all fundraise shares, allowing for the subscription of an additional share per two fundraise shares at 13p each.
This news follows a previously announced GBP200,000 conditional placing of 5.7 million shares priced at 3.5p per share.
ValiRx explained that: "The use of proceeds arising from the fundraise will provide the company with additional funds to meet its working capital requirements in the medium term and will enable the company to fund the close-out period of its clinical trial of VAL201."
VAL201 is being trialled at a treatment for prostate cancer as well as associated metastatic conditions.
By Anna Farley; annafarley@alliancenews.com
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ValiRx (VAL)