Faron Pharmaceuticals Limited (AIM:FARN) shares rose 10% in morning trading on Thursday after the company announced it had raised €12 million through a share placing, exceeding its original €10 million target due to strong investor demand.
The latest investment round was 1.8 times oversubscribed, prompting the company to increase the offering size.
Shares were sold at €1.72 each, a 10.3% discount to the 5 February closing price. Investment banks Carnegie and Bryan Garnier managed the transaction, which is set to be fully settled by 10 February.
The funds will support Faron’s BEXMAB Phase II trial, which is testing its experimental cancer immunotherapy, bexmarilimab. The money will go towards gathering long-term patient response and survival data, ahead of topline results in April 2025.
Faron’s chief financial officer, Yrjö Wichmann, said the funding provides a cash runway until December and strengthens the company’s position ahead of key discussions with the U.S. Food and Drug Administration.
In London, the stock was changing hands for 165p, up 15% on the day.