IQ-AI Ltd (LSE:IQAI, OTCQB:IQAIF) has announced £400,000 will be raised through a placement to help the company develop its oral anti-tumour agent.
Some £300,000 will be raised through the issue of 20m new shares at 1.5p each, IQ-AI said in a statement on Thursday.
A broker option, exercisable by Peterhouse Capital Ltd, will raise a further £100,000 through the issue of 6.67m shares.
These proceeds will then be used to further develop gallium maltolate, an oral anti-tumour agent which has fast-track designation status from the US Food and Drug Administration and is currently being studied in a phase one trial.
IQ-AI, which is the parent of Wisconsin-based Imaging Biometrics, said this would be done through an expanded access program and other commercialisation initiatives.
Existing shareholders will be able to take part in the placing through the broker option, IQ-AI added, with admission of the new shares taking place around March 1.