Faron Pharmaceuticals Limited (AIM:FARN) has unveiled plans to raise up to €30.7 million with €15 million of the sum already committed by investors - a key threshold for the fundraiser.
Proceeds from the latest financing round will underwrite ongoing work on its key asset, bexmarilimab, while negotiations continue to secure a licensing deal for this highly promising cancer treatment.
"Faron is currently at a very interesting stage," said the drug developer's chairman, Tuomo Pätsi.
"The preliminary results from the phase II study of our bexmarilimab drug candidate have been excellent and confirmed the previous positive phase I results.
"Now, our goal is to bring bexmarilimab to market as quickly as possible, as patients are waiting for such new treatment options.
"The planned share issue is therefore crucial so that we would have sufficient funding to finance our product development and to sign a significant commercial partnership agreement by the end of 2024."
Newly minted stock, priced at €1, will be offered to individual investors and companies in Finland, institutions in the UK, the European Economic Area and the US.
There will also be a UK open offer, while private investors will have the opportunity to be involved via the Rex Retail platform.
Faron has already secured binding subscription commitments totalling approximately €6.2 million and subscription guarantee undertakings up to €8.8 million.
These guarantees ensure that any unsubscribed shares will be covered, securing the minimum gross proceeds of EUR 15 million required for the offering to proceed.
Carnegie Investment Bank and Peel Hunt are lead managers and bookrunners for the offering.