Cizzle Biotechnology Holdings PLC (LSE:CIZ) shares dropped 14% in early trading after the UK diagnostics developer announced a conditional fundraising of £350,000 by issuing new shares at 2.1p each.
The funds will bolster working capital and further the development of early-detection tests for lung cancer.
An amendment to the loan facility agreement with E3 Fund SP will enable the subscription to proceed at a premium and extend the facility until December 2024.
The company aims to move ahead with its point-of-care test for use in primary healthcare settings, and the subscription will be crucial for maintaining the momentum in this regard, said Allan Syms, the company's chairman.
Cizzle stock was down 0.33p at 2.05p.