C4X Discovery Holdings plc (LON:C4XD) is raising £5mln through a share placing as it looks to advance its drugs development pipeline.
The AIM quoted pharma firm told investors that the new funds will help progress pre-clinical work as it moves drug candidates towards clinical trials and a “commercially attractive partnering point”.
It also plans to use cash to invest in new early stage lead compounds which can be aimed against “highly valuable drug targets” and it will also provide sufficient working capital to fund the group’s general operations.
C4X is selling just over 4.9mln new shares to new and existing investors at a price of 102p, a small discount to Monday’s closing price.
Calculus Capital Limited, a leading venture capital investor, is a cornerstone in the new funding taking some £3mln of the shares on offer, and as a result it will end up with just under 8% of the company.
Clive Dix, C4X chief executive, who is investing £475,000 in the placing, said: “The completion of this fundraise will allow C4XD to continue on its path to becoming the world's most productive drug discovery engine.
“We are already exploiting cutting edge-technologies to design and create best-in-class small molecule candidates.
“The additional funds will allow us to progress our existing innovative pipeline towards the clinic and draw on the strengths of our discovery engine to start the development of four new medicines for diseases with a high unmet medical need.”