Sareum Holdings PLC (AIM:SAR) shares fell 10% after the biotechnology company raised £1.07 million through a discounted share subscription.
The company issued 8.56 million new ordinary shares at 12.5 pence each, 24% lower than Wednesday's close.
The funds will support the development of Sareum’s expanded portfolio of kinase inhibitors for autoimmune disease and cancer, as well as general working capital.
In a separate announcement, Sareum said it acquired the licence for former lead asset SRA737, a clinical-stage cancer drug, after its return from a US-based biopharma company.
The revised agreement increases Sareum’s share of future revenues to 63.5% from 27.5%.
The drug targets cancer cell replication and DNA damage repair. Ongoing costs will be limited to storage and intellectual property management.
Chairman, Dr Stephen Parker, said the deal strengthens Sareum’s ability to explore partnerships. The company also continues to advance its autoimmune drug, SDC-1801.
In early trading, the stock was down 1.72p at 14.78p.