Trellus Health PLC (AIM:TRLS) shares jumped some 20% in Monday's early deals, after it agreed an unsecured loan of US$600,000 from a major shareholder, the Icahn School of Medicine at Mount Sinai.
The company, in a statement, said the loan extends its cash runway to late January 2026 while it continues discussions on a potential equity fundraise.
It added that commercial efforts remain focused on securing additional contracts with pharmaceutical companies and contract research organisations.
The loan is non-interest bearing for six months before moving to an annual rate of 8%. The twelve-month loan can be redeemed or converted into ordinary shares at 0.525 pence, subject to a cap preventing Mount Sinai from exceeding 29.9% ownership.
“We are extremely grateful for Mount Sinai's continued support, which enables us to focus on executing agreements with pharmaceutical companies and CROs,” said chief executive Dr Marla Dubinsky
She added: “We have already begun implementation for the Phase 2B and Phase 3 trials with these partners and expect to launch the initial TrialSet programs by year-end.”
Trellus shares gained 20,95% in early trade, changing hands at 0.64p.