Genflow Biosciences PLC (LSE:GENF, OTCQB:GENFF) shares jumped 88% on Thursday after the longevity-focused biotech firm announced a £440,000 fundraising that it said was more favourable to shareholders than a previously proposed deal.
The company scrapped an earlier subscription agreement announced on 2 October, instead opting for an alternative transaction in which chief executive Eric Leire subscribed for 40 million new shares at 1.1p each, the closing bid price on 8 October.
Leire will retain around 4.5 million shares and transfer the remaining 35 million to a consortium of existing investors. Both he and the group will receive one-for-one warrants exercisable at 1.2p over the next two years.
Genflow said the decision was taken to limit dilution for existing shareholders while ensuring sufficient funding to progress near-term objectives. The new shares are expected to be admitted to trading on 16 October, taking the company’s total share count to about 494 million.
Leire said the funding reflected the “continued confidence and commitment” of Genflow’s long-term investors. The rally follows a difficult year for small-cap biotech stocks, with the company’s focus now on advancing its genetic therapies aimed at extending healthy lifespan.
The stock rose 0.97p to 2.07p