Allergy Therapeutics has arranged a financing package from two of the major shareholders that will enable it to carry on with planned trials of its hay fever and peanut vaccines.
ZQ Capital and Southern Fox are making direct equity subscriptions at 1p per share into the company worth £40.75mln in total.
The two are also providing a debt facility for the same amount, but Allergy says given the terms attached to the loan it will use proceeds from the equity raise to pay off the facility.
An open offer will raise up to a further £8mln, with ZQ Capital acting as underwriter which will see it having to make a mandatory offer if its holding rises above 30%.
Allergy had been forced into this position due to a cash crunch caused by a halt in production of its hay fever products during October and November.
As a result, Allergy now expects to make an interim operating loss of £8mln (£7.4mln profit) to December on half-year revenues of £39.9mln (£48.7mln).
Second-half revenues are expected to be similar to the first six months, Allergy said, but gross margins will be lower again.
R&D costs will also rise over the next two years as the g306 grass field study and peanut vaccine trials step up.
Cash on 2 April was £12.6mln but second-half outflows are expected to be high, said the statement.
Shares were suspended on AIM last year following a delay in the 2022 accounts, which were held up pending the agreement of new funding.
Allergy added there might also be a qualification related to German subsidiary Bencard Allergy’s pension fund while the numbers will be presented on a going concern due to more funding being required within the next twelve months to carry on with its R&D programmes.
If the accounts are not ready by 30 June, Allergy’s AIM listing will be cancelled.