Faron Pharmaceuticals Oy (LON:FARN) has unveiled plans to raise £8mln, which will fund the development of its two lead drugs.
Just under 2.9mln shares will be issued at 250p each, the same price the stock closed on Monday.
The absence of a discount suggests there is a healthy appetite for the equity.
Faron will use the cash injection to carry out safety trials in the US for Traumakine, which is used to treat patients with a rare condition called acute respiratory distress syndrome.
ARDS affects several hundred thousand patients annually with death rates as high as 45%. There is currently no approved drug treatment.
“The US represents a large opportunity to Faron for Traumakine, and the funding would allow us to take the first step in its development and FDA registration process,” said Faron chief executive, Dr Markku Jalkanen.
Some of the new funding will pay for a phase I/II trial of Traumakine in patients with heart condition called rupture of abdominal aorta aneurysm.
Importantly, money has also been set aside for the pre-clinical and early clinical development of Clevegen, an antibody that could help the body’s own immune system tackle cancer.
"We have made substantial progress with our immunotherapy candidate Clevegen and expanded the development strategy to focus on chronic infections and vaccination enhancement. We expect to create significant shareholder value by progressing Clevegen into clinical development through the application of the funding,” said CEO Jalkanen.