Faron Pharmaceuticals Limited (AIM:FARN) has successfully raised €4.8 million in a share placing as management works on a longer-term funding plan that will allow it to complete a phase II trial of its promising cancer treatment.
Including the €3.2 million convertible loan note, the drug developer has sufficient cash to maintain the required covenant levels and possesses sufficient working capital into June.
The share placing attracted support from both new and existing shareholders, including significant investments from the European Innovation Council (EIC Fund) alongside other Finnish and international investors.
"This fundraise will enable us to meet our immediate financing needs and continue our ambitious bexmarilimab development program, with a focus on delivering the next milestones," said Dr Markku Jalkanen, Faron's CEO.
"These funds are part of the larger financing plan to secure cash runway into the beginning of 2025 and to complete phase II study and receive FDA's guidance for the pivotal study part."
To complete its phase II BEXMAB study, which is assessing the potential of lead drug bexmarilimab, Faron estimates it will require a further €27 million.
The investment would allow Faron to complete the trial enrolment as well as secure interim and final data readouts along with regulatory feedback from the US Food & Drug Administration.
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