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30 Nov 2017 14:38
30 November 2017
ValiRx Plc
("ValiRx" or the "Company")
Issue of Equity
ValiRx Plc (AIM: VAL), a clinical stage biotechnology company, is pleased to announce it has conditionally raised £1.0 million of gross proceeds through the issue of 80,000,000 new ordinary shares at a price of 1.25 pence per share ("Placing Shares"). The funds will be used for advancing the clinical trial of VAL201 and for the preclinical progress of other programmes, previously announced. The funds were raised through the Company's broker, Beaufort Securities Limited ("Beaufort").
The Company currently only has the authority to issue and allot 47,000,000 shares for cash, consequently the placing will be done in 2 tranches. Tranche 1 of 47,000,000 ordinary shares will be done immediately, providing the Company with gross proceeds of £587,500. Application will be made to the London Stock Exchange for the 47,000,000 new ordinary shares to be admitted to trading on AIM. Admission of these shares is expected to occur on or around 14 December 2017.
The Second Tranche of 33,000,000, representing gross proceeds of £412,500 ordinary shares is conditional on shareholders authority, to be sought at a forthcoming General Meeting - to be convened shortly, a further notification will be made by the Company in due course.
The Placing Shares will, when issued, rank pari passu in all respects with the existing ordinary shares of the Company.
Following Admission of the first Tranche, the Company's enlarged issued share capital will comprise 263,405,413 ordinary shares of 0.1p each with voting rights. The Company does not hold any shares in treasury. This figure of 263,405,413 may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA's Disclosure and Transparency Rules.
The Company has agreed to grant Beaufort a warrant to subscribe for 10 per cent of the Placing Shares admitted to trading on AIM (i.e. up to 8,000,000 ordinary shares - depending on the admission of the Second Tranche) at an exercise price of 1.25 pence per share. The warrants may be exercised at any time in the period expiring on the third anniversary of the date of Admission of the Placing Shares.
The Company notes the recent rise in its share price and believes this to be a consequence of comments and analysis surrounding the Company's developmental pipeline and confirms that further to the announcement released on 28 September 2017, the Company remains on track to disclose results from the VAL401 trial before the year end.
- ENDS -
For more information, please contact:
ValiRx plc | Tel: +44 (0) 20 3008 4416 |
Dr Satu Vainikka, Chief Executive Tarquin Edwards, Investor Relations
| www.valirx.com Tel: +44 (0) 7879 458 364 tarquin.edwards@valirx.com |
Cairn Financial Advisers LLP (Nominated Adviser) | Tel: +44 (0) 20 7213 0880 |
Liam Murray / Jo Turner | |
Beaufort Securities Limited (Broker) | Tel: +44 (0) 20 7382 8300 |
Jon Belliss | |
Notes for Editors
About ValiRx Plc
ValiRx is a biotechnology oncology focused company specialising in developing novel treatments for cancer and associated biomarkers. It aims to make a significant contribution in "precision" medicine and science, namely to engineer a breakthrough into human health and well-being, through the early detection of cancer and its therapeutic intervention.
The Company's business model focuses on out-licensing therapeutic candidates early in the development process. By aiming for early-stage value creation, the company reduces risk considerably while increasing the potential for realising value. The group is already in licensing discussions with major players in the oncology field.
ValiRx's two classes of drugs in development, which each have the potential for meeting hitherto unmet medical needs by existing methods, have worldwide patent filings and agreed commercial rights. They originate or derive from Word class institutions, such as Cancer Research UK and Imperial College.
Until recently, cancer treatments relied on non-specific agents, such as chemotherapy. With the development of target-based agents, primed to attack cancer cells only, less toxic and more effective treatments are now possible. New drugs in this group-such as those in ValiRx's pipeline-promise to greatly improve outcomes for cancer patients.
The Company listed on the AIM Market of the London Stock Exchange in October 2006 and trades under the ticker symbol: VAL.
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