Faron Pharmaceuticals Ltd (LON:FARN) has raised around €1.34mln (£1.15mln) from a share subscription by an existing shareholder to extend the company's working capital into mid-fourth quarter 2019 following on from a share placing in March.
The clinical stage biopharmaceutical company said Timo Syrjälä and Acme Investments SPF Sarl, an entity wholly owned by Syrjälä has subscribed for 1,757,375 new ordinary shares in the company at a price of €0.7598 (£0.65) each.
Following the subscription, Syrjälä's total holding in the company's shares, which includes his indirect holding through Acme, is 4,519,375 shares, representing 12.14% of the enlarged issued share capital.
The group said the net proceeds of the subscription will also be applied towards advancement of the company's key products in line with the strategy set out in the recent placing on 26 March 2019 and its annual results announcement on 7 May 2019.
The company added that it will continue to explore further funding opportunities and in particular continue its discussions with potential licensing partners.
Markku Jalkanen, Faron’s CEO commented: "Following the financing raised from new and existing shareholders earlier this year, we are very pleased to receive this additional shareholder support.
“The year 2019 is significant for Faron, as we seek to advance our clinical programmes for Traumakine, and especially for Clevegen. We are highly encouraged by the confidence our shareholders continue to show in the Company."