Destiny Pharma PLC (AIM:DEST) is to raise around £7mln through the issue of shares at 50p a share.
The clinical-stage biotechnology company focused on the development of novel medicines to prevent life-threatening infections said the funds would allow it to continue progress towards Phase 3 trials in its two lead, clinical assets, NTCD-M3 and XF-73 Nasal, and finalise regulatory plans, while also strengthening the balance sheet as the company progresses partnering discussions in relation to NTCD-M3.
The company has conditionally placed 11.86mln while certain directors of the company have agreed to buy an aggregate of 140,000 shares at the issue price. Existing shareholders will also be given the opportunity to subscribe for up to 2.01mln shares (in aggregate).
The company said the fundraising comes at an important time for Destiny Pharma and the board decided to proceed in very difficult market conditions – the placing price is 19p below last night’s closing mid-market price – because it was felt that any delay in activity on either of the key assets would significantly reduce the value of both products and leave the company in a vulnerable position.
"We are very pleased with the results of the fundraising and the support from our existing and new shareholders,” said Neil Clark, the chief executive officer of Destiny.