Nuformix PLC (LON:NFX) said it is raising £650,000 as it looks to develop its assets to help fight coronavirus (COVID-19).
The drug re-purposing specialist is placing 23.2mln shares at 2.8p each with existing and new investors.
The cash injection will help strengthen data packages around drugs it has identified for treating the effects of coronavirus.
It will also be used to “maximise opportunities” for development pipeline - especially its lead asset, NXP002. The drug is being developed to tackle idiopathic pulmonary fibrosis, but Nuformix believes there is the potential to use it treat the worst symptoms of COVID-19. It also thinks it could be used as combination therapy alongside other existing IPF treatments.
The proceeds from the fundraiser will also be used to recruit a chief executive “with responsibility for delivering the group's strategy and to “augment and strengthen the board” with additional non-executive expertise.
In a progress report, the company said it is expanding its business development strategy to “optimise chances of securing additional deals and drive maximum value for shareholders”.
And it has accelerated its licensing activities for the lead asset, NXP002, to identify global partners in addition to the ongoing negotiations in Asia.
Finally, Nuformix said it wants to “exploit value” from NXP001 in indications outside the field of oncology.
In a statement, it added: “The board is positive about the opportunities for the group, in particular, for the development of certain assets for the treatment of Covid-19. Support for these efforts will require additional business development resource.”