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ImmuPharma raises around £2.66mln from subscription agreement with institutional investor, Lanstead Capital

It said the proceeds of the subscription will be used primarily to fund the execution of its corporate strategy, including progressing Lupuzor through both corporate partnerships and regulatory pathways
Drug testing
The sharing agreement with Lanstead, entitles the company to receive back the proceeds on a pro rata monthly basis over a period of 24 months

ImmuPharma PLC (LON:IMM) has raised around £2.66mln from a subscription agreement with institutional investor, Lanstead Capital, together with a related sharing agreement.

The AIM-listed specialist drug discovery and development Company said Lanstead is subscribing for 26,565,200 new ordinary shares at an issue price of 10p each, representing approximately 19% of the company's existing issued share capital. The issue price represents a 26.5% discount to Immupharma’s closing mid-market price on Tuesday.

READ: ImmuPharma continuing to talk with potential partners

The subscription, the maximum amount under the company's existing authorisation, represents a further supportive investment in the company by Lanstead following the £4.43mln it made investment in February 2016, from which the Company ultimately received just over £5.0mln including the additional funds received through a sharing agreement over time.

The sharing agreement with Lanstead, entitles the company to receive back the proceeds on a pro rata monthly basis over a period of 24 months, subject to adjustment upwards or downwards each month depending on the company's share price at the time.

The group said the sharing agreement provides the opportunity for the company to benefit from positive future share price performance. It has also agreed to issue 1,328,290 ordinary shares to Lanstead in connection with entering into the sharing agreement.

Immupharma said the proceeds of the subscription will be used primarily to fund the execution of its corporate strategy, as announced on 7 May 2019, including progressing Lupuzor through both corporate partnerships and regulatory pathways and proactively pursuing the 'spin-off' of the subsidiary companies, Ureka and ELRO, in order to unlock their future potential and enhance value to shareholders.

Commenting on the share subscription, ImmuPharma's Chairman, Tim McCarthy, said: ”Lanstead has been very supportive of the Company since their first investment in 2016 and this latest subscription demonstrates their continued support and the alignment of both the Company and Lanstead's belief of the potential of substantial value enhancement for shareholders in the future execution of the Company's recently stated corporate strategy."

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