Shield Therapeutics PLC (AIM:STX, OTCQB:SHIEF) has raised £1.5 million from institutional investors to support the growth of its iron deficiency treatment, ACCRUFeR.
The AIM-listed drugmaker said it issued 20 million new shares at 7.5p each, a price that was about 5% above the average of the past 30 days. The stock represents 1.9% of its existing share capital.
Shield said the placing was driven by unsolicited interest from investors rather than a need to shore up its balance sheet.
Santosh Shanbhag, chief financial officer, said: “We are pleased with the continued momentum of ACCRUFeR growth in the US, which has now become the #1 branded prescription oral iron in the market today.
"This placing is in the best interests of the company by broadening its institutional shareholder base and whilst we remain confident in turning cash flow positive by the end of 2025 it also further strengthens the Company's working capital position, allowing the board and management to focus completely on accelerating sales of ACCRUFeR.”
ACCRUFeR is Shield’s flagship product, a pill designed to treat iron deficiency without the gastrointestinal side effects that can occur with standard regimens.