Faron Pharmaceuticals Limited (AIM:FARN) has confirmed it is in "advanced negotiations with various investors" to secure immediate funding.
Faron also said it has enough cash to continue operations into April and, crucially, is in talks to complete €5 million in bridge financing.
"The company will update the market in due course of any material developments as soon as practicable," Faron added.
In the update, the drug developer said it had signed off a deal with debt provider IPF, which will be accorded special rights to acquire additional shares in the company at a pre-agreed price.
Faron is developing a promising immunotherapy that reprogrammes myeloid cells to activate anti-tumour immunity.