Circassia Group PLC (LON:CIR) said it has been provided access to a £5mln equity finance facility by the North Atlantic Small Companies Investment Trust (NASCIT) and noted stock market investor, Richard Griffiths.
The facility will be available until November 30, and the new stock will be issued at “the lower of 24.6p and the price at which Circassia may issue any other new ordinary shares”.
NASCIT will subscribe to 70% of the shares, Griffiths the remainder.
Chairman Ian Johnson said he was “grateful” of the support from the company’s two key investors.
While the return of the Tudorza and Duaklir assets to AstraZeneca has removed all debt from the Circassia balance sheet, the coronavirus pandemic had continued to impact the firm’s Niox business, he explained.
“In recent weeks sales figures do suggest a gradual improvement as lockdown restrictions are lifted in different geographical markets in which we operate,” Johnson went on.
“The timing and extent of this recovery remain, predictably, uncertain at the current time and accordingly, the Board believes that it is prudent to ensure the Company has access to additional liquidity should it be required in the coming months.
“I am grateful for the support of two of our largest shareholders during this period as we continue to restructure the company and invest in the Niox business to aid recovery and deliver long-term growth."