Shareholders in Faron Pharmaceuticals Limited (AIM:FARN) have approved plans to allow the Finnish drug developer to launch a rights issue of up to 80 million new shares, paving the way for a potential fundraising in the coming months.
The decision was taken at an extraordinary general meeting held in Turku, where investors backed a proposal put forward by the board and previously outlined in a notice published on 9 February.
Faron, a clinical-stage biopharmaceutical company developing immunotherapies for cancer, said the authorisation enables it to proceed with a rights offering in which existing shareholders will be invited to subscribe for new shares in proportion to their current holdings.
Any shares not taken up under those pre-emptive rights may be offered on a secondary basis to other would-be investors or to third parties. The board has discretion to decide how any unsubscribed shares are allocated.