Company funding11 Oct 2020 15:08
So, the company will require funding in Q1 2021 and I think a lot of people made anticipating another placing but this was from February placing:
“Participants in the placing and subscription would receive warrants, on the basis of one warrant for every two placing shares or subscription shares taken up by each participant.
The warrants would be exercisable for five years from the date of admission, and had an exercise price of 100p per Ordinary Share.
4D Pharma said it would not be making an application for the warrants to be admitted to trading on AIM.
The net proceeds of the fundraising, together with the company's existing resources, were expected to support its ongoing clinical studies in irritable bowel syndrome (IBS) and oncology, and to enable the company to continue to fund its operations to at least two clinical study readouts, as well as for general corporate purposes.
Subject to reporting positive data from these studies, 4D said it believed those would provide a material validation for its approach to developing live biotherapeutics, and also serve as value-accretive events for shareholders.
The company's longer-term development, regulatory and commercial strategy for its portfolio of live biotherapeutics would be informed by those data readouts, with the group's further funding needs and partnering strategy to be addressed in that context.”
You do wonder whether something big is brewing in the background vis a vis partnerships deals with IBS and Oncology. The Merck deal fills me with confidence here. Also the warrants are at £1 and so if some big boys were looking to cash in would they not have exercised these warrants and sold them off?!
Could be an interesting few weeks here I think. The wider pharma market will have had time to digest the IBS results and the full data set will be released. Can’t help but feel that the progress made this year is not fully appreciated given that we are flat market cap wise for the year.
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