ImmuPharma PLC (AIM:IMM), a specialist in drug discovery, has secured £2.91 million in new funding through an oversubscribed placing and a subscription deal with investor Lanstead Capital.
The money will support further development of its P140 autoimmune technology, as well as ongoing discussions with large pharmaceutical companies about potential licensing deals.
The investment round includes £1.034 million from new and existing institutional investors, raised through a placing of 27.6 million shares at 3.75p each.
In addition, Lanstead Capital, which already owns 6.5% of the company, has subscribed for 50 million new shares at the same price, contributing £1.875 million.
ImmuPharma has also entered into what it called a 'sharing agreement' with Lanstead, allowing the company to receive monthly payments over seven months.
These payments will vary depending on the share price at the time, giving ImmuPharma the potential to benefit if its stock performs well. The funds will also be used for general working capital and fundraising costs.
Welcoming the inflow of new funds, chairman, Tim McCarthy, said the money would be put to work immediately.
"We kickstarted this year with a key announcement on 9 January, announcing innovative groundbreaking advancements in our preclinical research program focused on P140 and the pathogenesis of autoimmune diseases," he told investors.
"This new discovery yielded data that provided novel insights into autoimmune disease mechanisms, whilst, in addition, supporting the mechanism of action of our P140 technology platform and its significance for being effective in a number of auto-immune diseases including our lead programme, for lupus.
"Following on from this, we believe that 2025 will be a transformational year for ImmuPharma, with further positive news announcements within the P140 technology platform and a clear focus on securing partnering deals for all the assets across our development portfolio."