Shares of Shield Therapeutics PLC (AIM:STX, OTCQX:SHIEF) rose in afternoon trading after the company announced a $10 million fundraising commitment from its largest investor, AOP Health International.
AOP will purchase new shares at 3p each, slightly above the previous day’s closing price.
Shield also plans to raise an additional $1.3 million (£1 million) through a retail share offering. The funds aim to support the company’s goal of becoming cash flow positive by the end of 2025.
Shield’s main product, Accrufer (Ferracru® in the U.S.), is an oral iron therapy approved in the U.S. and Europe.
Designed to minimise side effects like gastrointestinal discomfort, it is widely used for managing iron deficiency in chronic conditions.
"The additional funding is expected to further support the company towards its aim of becoming cash flow positive by the end of current-year 2025," said broker Cavendish repeating its 30p a share price target.
"We remind investors that Shield has an existing $20 million secured debt financing facility with SWK, as well as a recently expanded $15 million factoring arrangement between Shield US and Sallyport.
"In addition, in July 2024 Shield entered into a $5.7 million milestone monetisation agreement with AOP."
In afternoon trading, the stock was up 2% at 2.9p.