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Sareum Holdings plc (AIM: SAR), a clinical-stage biotechnology company developing next-generation kinase inhibitors for autoimmune disease and cancer, announces that it has completed a conditional fundraise of up to £1.5 million (before expenses), via the issue of a total of up to 15,000,000 new ordinary shares of 1.25 pence each in the capital of the Company ("Ordinary Shares") at a price of 10 pence per new
Ordinary Share (the "Placing Price") (the "Fundraise").
The Fundraise will comprise the issue, at the Placing Price, of: · 9,550,000 new Ordinary Shares via a placing (the "Placing Shares") through the Company's broker, Hybridan LLP (the "Placing"); · up to 2,255,000 new Ordinary Shares via a direct subscription (the "Subscription Shares") by certain high net worth individuals (the "Subscription"); · 195,000 new Ordinary Shares via a subscription by certain Directors of the Company (the "Director Subscription"); and · up to 3,000,000 new Ordinary Shares via a retail offering (the "WRAP
Retail Offer") to the Company's existing shareholders, which will be launched shortly, to raise up to £300,000.
In addition, the Company will issue, based on the Placing Price, 576,698 new
Ordinary Shares in lieu of amounts owed to certain Directors from historically deferred salaries (the "Salary Conversion Shares") and 450,000 new Ordinary
Shares to certain advisers to settle amounts due in respect of professional fees (the "Adviser Fee Shares").
As a result of the Fundraise, 1,106,986 warrants over new Ordinary Shares that have been issued to RiverFort Global Opportunities PCC Ltd ("Riverfort") as part of the drawdowns to date under the Equity Prepayment Facility (as announced on 3 August 2023), have had their exercise price rebased to the
Placing Price in accordance with the terms of the agreement entered into at the time of the Equity Prepayment Facility. The Company does not intend to make any further withdrawals pursuant to the Equity Prepayment Facility with
RiverFort.
Use of Proceeds and Cash Preservation
The net proceeds from the Fundraise are intended to be used by the Company to complete Phase 1a clinical studies on its SDC-1801 TYK2/JAK1 inhibitor ("Phase 1a") and, together with the receipt of anticipated R&D tax credits in the amount of £0.7 million which is expected in September 2024, for general working capital purposes.
Furthermore, as part of the Company's ongoing steps to minimise its cash utilisation, in addition to the Salary Conversion, the Directors have agreed to defer a portion of their salaries going forward, so as to ensure the completion of Phase 1a clinical trial can be achieved, with topline data from the trial expected in Q2 2024.
Director Subscription, Salary Conversion and Related Party Transactions
Pursuant to the Director Subscription, Tim Mitchell, CEO, and Clive Birch,
Non-Executive Director, intend to participate in the Fundraise, via direct subscriptions of £5,000 and £4,500 respectivel
HOLDINGS PLC. 28 March 2024
Sareum Holdings plc ("Sareum" or the "Company")
WRAP Retail Offer for up to £300,000
Sareum Holdings plc is pleased to announce a retail offer via the Winterflood
Retail Access Platform ("WRAP") to raise up to £300,000 (the "WRAP Retail
Offer") through the issue of new ordinary shares of 1.25 pence each in the capital of the Company ("Ordinary Shares"). Under the WRAP Retail Offer, up to 3,000,000 new Ordinary Shares (the "WRAP Retail Offer Shares") will be made available at a price of 10 pence per new Ordinary Share.
In addition to the WRAP Retail Offer and as announced earlier this morning, the Company is also proposing a fundraise via a placing and subscription of up to 12,000,000 new Ordinary Shares (the "Placing Shares" and, together with the
WRAP Retail Offer Shares, the "New Ordinary Shares") to raise approximately £1,200,000 (before expenses) (the "Placing") at a price of 10 pence per share (the "Placing Price"). Hybridan LLP acted as sole broker to the Placing. The
Placing Price represents a discount of approximately 31 per cent. to the mid-market closing price of an Ordinary Share on 27 March 2024 (being the latest practicable date prior to this announcement). The issue price of the
WRAP Retail Offer Shares is equal to the Placing Price.
A separate announcement has been made regarding the Placing and its terms and sets out the reasons for the Placing and use of proceeds. The proceeds of the WRAP Retail Offer will be utilised in the same way as the proceeds of the
Placing, to complete Phase 1a clinical studies on its SDC-1801 TYK2/JAK1 inhibitor and, together with the receipt of anticipated R&D tax credits in the amount of £0.7m, for general working capital purposes. .
For the avoidance of doubt, the WRAP Retail Offer is not part of the Placing.
Completion of the WRAP Retail Offer is conditional, inter alia, upon the completion of the Placing but completion of the Placing is not conditional on the completion of the WRAP Retail Offer.
The WRAP Retail Offer and the Placing are conditional, inter alia, on the New
Ordinary Shares being admitted to trading on the AIM Market ("AIM") of the
London Stock Exchange plc ("Admission"). It is anticipated that Admission will become effective and that dealings in the New Ordinary Shares will commence on
AIM, at 8:00 a.m. on 5 April 2024.
WRAP Retail Offer
The Company values its retail shareholder base and believes that it is appropriate to provide its existing retail shareholders in the United Kingdom the opportunity to participate in the WRAP Retail Offer.
Therefore, the Company is making the WRAP Retail Offer open to eligible investors in the United Kingdom, being existing shareholders of Sareum, following release of this announcement and through certain financial intermediaries. Existing shareholders can contact their broker or wealth manager to participate in the WRAP Retail Offer.
OMG! Are people still having dialogue with JMAX???
Guys, wise up! He is nothing but a wind up merchant who had he been still at school would be the kid everyone else would pick on for being just who he is.
Save your stress levels and block him. Worked for me. (;-)
All you do is annoy people and cause friction. grow up and go elsewhere to be heard as nobody really appreciates you here. try making some friends, get a hobby or join a society to fill your time rather than waste yours and everyone else's time and effort trying to have a dick measuring contest every day son.
Jm; I can only assume you are educationally challenged. Clearly demonstrated by your lack of knowledge of the English language AND by the fact that you somehow think that by me holding my shares at an average price of 26p is somehow lining your schoolboy shorts pockets? Do please explain and if you need help with the spelling then find a grown up to assist.
All the best and gla Lth x
Depressed sentiment in whole market , thin trading, potential WW3, global warming and general apathy. Stop moaning everyone. It will either recover to its real value or we all go out in a puff of smoke and blinding flash of light…..
Have a great weekend all x