ValiRx PLC (LON:VAL) has raised £0.5mln in gross proceeds through a share placing to further expand the scope of the clinical trial of its VAL201 treatment for prostate cancer.
The AIM-listed clinical stage biotechnology said its company broker, Novum Securities issued 83,333,333 new ordinary shares at a price of 0.6p each with new and existing investors.
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The company pointed out that, aside from the clinical trial of VAL201, the net proceeds will also be used to progress the development of the pre-clinical VAL301 and VAL101 programmes and towards clinical trials.
ValiRx said that as part of the fee arrangement associated with the placing, the company has agreed to issue Novum with a warrant over 8,333,333 ordinary shares in the company, which can be exercised at a price of 0.6p each at any time until the third anniversary of the issue of the warrant.
In midday trading, ValiRx shares were trading at 0.65p each, down 16% on Wednesday’s close.