ValiRx, the AIM-listed life sciences company focused on early-stage cancer therapeutics and women's health, has raised up to £1.155 million through a placing, subscription, and planned retail offer at 0.2p per share.
The shares fell 17% to 0.2p, matching the issue price, which itself represented a 17% discount to the previous closing price.
The placing of 500 million new shares raised the bulk of the proceeds, with a further £5,000 coming through a director subscription and up to £150,000 to follow via a retail offer open to smaller investors.
Shard Capital Partners acted as sole broker.
Subscribers will also receive one warrant for every new share acquired, exercisable at 0.28p, a 40% premium to the issue price, subject to shareholder approval at the company's annual general meeting in June.
The enlarged share capital will rise to 1.32 billion shares, assuming full take-up of the retail offer.
ValiRx said the proceeds will fund in-licensing activity, intellectual property expansion, preclinical development, and the growth of its animal health division.
Near-term milestones include the grant of patents for its Cytolytix programme, validation of the primary indication for ValiRx Animal Health, and the progression of non-dilutive funding applications with read-outs expected between July and November.
The company is also progressing the in-licensing of an asset from McGill University, with potential for a cross-license to its animal health subsidiary, and plans to complete a drug repurposing screen that could support future grant funding or a partnering deal.
Chief executive Mark Eccleston said the fundraising was designed to unlock several near-term catalysts across the portfolio, adding that the company's capital-efficient model was built around licensing, partnerships, and non-dilutive funding rather than traditional high-cost biotech development.
Chairman Martin Gouldstone said ValiRx was building an asset-rich business that he believed was "massively undervalued".