Faron Pharmaceuticals Limited (AIM:FARN, OTC:FPHAF) has raised €12mln in an oversubscribed placing of shares with new and existing investors, including follow-on support from The Leukemia & Lymphoma Society (LLS).
The cash will be used to accelerate the development of its key asset, the promising clinical-stage cancer treatment bexmarilimab.
It will also be deployed to strengthen the drug developer’s balance sheet, ensuring it meets all its financial and operating covenants.
The newly-minted stock was sold at a 13.9% discount to Thursday’s closing share price.
“We are extremely pleased with the results of this oversubscribed placing and the support we received from new and existing investors, especially the second investment from LLS,” said Toni Hanninen, Faron’s chief financial officer.
“These funds allow us to accelerate our bexmarilimab pipeline further, including the acceleration of our BEXMAB study and the initiation of our recently approved BEXCOMBO study in 2023. Additionally, we are further strengthening our presence and building the team in the US as previously communicated.”
The phase II BEXCOMBO trial will assess the efficacy in solid tumours of bexmarilimab in combination with PD-1 blockade drugs.