ImmuPharma PLC (LON:IMM) has raised £1.5mln from a share subscription to fund an expansion of its research & development (R&D) programmes.
The drug developer said it has raised the funds through the issue of 15mln new shares at a price of 10p each, a 6.5% discount to its closing price last Friday.
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The offering comprises a £200,000 share subscription by the company’s president and chief scientific officer Robert Zimmer, as well as a £1.3mln one from Lanstead Capital, an institutional investor and significant shareholder in the group.
The cash will be used to boost ImmuPharma’s R&D pipeline which now includes four therapy areas.
The company is strengthening its advisory team for a phase III trial of its Lupuzor lupus treatment and has also planned a proof of concept study for Lupuzor in patients with chronic inflammatory demyelinating polyneuropathy (CIDP).
ImmuPharma is also focusing on 3 anti-infectives, anti-viral, anti-fungal and anti-bacterial, as well as a new BioGlucagon product, a rescue therapy for low sugar events in diabetes, which has a potential market launch date in 2022.
"We believe that this latest investment from Lanstead is a strong endorsement of ImmuPharma and in support of their own carefully developed investment strategy of only supporting companies and technology platforms which have substantial future accretive opportunities”, ImmuPharma chairman Tim McCarthy said in a statement.
"The proceeds from these investments by Dr Zimmer and Lanstead, together with existing cash resources, will support the significant expansion of our R&D pipeline. We look forward to continuing our long and beneficial relationship with Lanstead which ultimately is focused on creating greater value for shareholders over the medium and long term", he added.
ImmuPharma shares rose 1% to 10.8p in early trading on Monday.