C4X Discovery Holdings PLC (LON:C4XD) has raised around £6.6mln to strengthen its balance sheet amid ongoing licensing discussions for its early-stage drug candidates.
The fundraising saw a total of 46,466,667 shares placed by Panmure Gordon today at a price of 15p each, raising a total of approximately £7.0mln for the company before expenses, while, concurrent with the placing, directors of the company subscribed for 200,000 shares also at the issue price.
WATCH: 'Momentum building' within C4X Discovery portfolio as it looks to license NRF-2 programme[hhmc]
The placing and subscription shares being issued represented approximately 80.7% of company's issued ordinary share capital prior to the fundraising, while the issue price represented a 63% discount to the company's mid-market closing price as at 23 October 2019. C4X shares closed at trading at 18p on Thursday, down 55.6%.
The company said the net proceeds of the placing and subscription will be used to strengthen its balance sheet as near-term and other licensing discussions and strategic collaborations progress, and support working capital during the expansion of its pipeline portfolio.
Following the successful closing of the placing and subscription, C4X said it would also look to raise up to £1mln through an open offer to eligible shareholders. One share will be offered for every nine existing shares held by an investor.
C4X chief executive Clive Dix said: "In these unprecedented times for investment in our industry, leading to extremely turbulent market conditions, we are delighted to have raised £7.0 million to support the execution of our strategy which is reflective of confidence in the future value of our business. We want to thank both our existing shareholders for tRead More – Source
