Faron Pharmaceuticals Oy (AIM:FARN, OTC:FPHAF) has raised €5mln placing new shares with a small number of institutional and "other" investors – cash that will be used to develop its cancer asset.
The fundraiser won the support of the Leukemia & Lymphoma Society Therapy Acceleration Program, which provides charitable cash in the form of venture backing.
The stock was sold at Monday's volume-weighted price average price on the Nasdaq Helsinki First North Growth Market.
Most of the cash will be invested in bexmarilimab, an immunotherapy targeting hard-to-treat cancers.
Specifically, Faron plans to conclude its MATINS clinical trial for the US Food & Drug Administration (FDA) end-of-phase meeting. It also wants to progress the BEXMAB hematologic combination trial, begin a solid tumour study and "advance" the commercial scale-up of BEX CMC.
"This fundraiser will enable us to accelerate our ambitious bexmarilimab development program, with a specific focus on advancing our combination trials in both solid tumours and hematologic malignancies," said Dr Markku Jalkanen, Faron’s chief executive.
Faron said together with its current reserves it had a cash runway to take it out to the first quarter of next year.