ImmuPharma PLC (AIM:IMM, OTC:IMMPF) said it is raising £1.1mln via a placing of shares at 5p.
The drug developer also unveiled a broker option to raise an additional £1.3mln.
In a comprehensive financing update, the group said it had also entered a sharing agreement with cornerstone investor Lanstead Capital that provides it with access to around £1mln in capital over the next two years.
Proceeds from the fundraisers will be invested in the research and development pipelines.
Partner Avion Pharmaceuticals is taking ImmuPharma’s key asset, Lupuzor, into a US phase III clinical trial treating people with autoimmune disease lupus.
ImmuPharma is also looking for deals similar to the one it has with Avion in territories outside the US for Lupuzor.
The compound, known as P140, is also being developed to treat a rare neurological disorder called chronic inflammatory demyelinating polyneuropathy.