Shield Therapeutics PLC (AIM:STX, OTCQX:SHIEF) today confirmed major shareholder AOP Health had raised its stake in the iron deficiency drug specialist to more than 27%.
Austria-based AOP, which specialises in treatments for relatively rare or orphan treatments, lent Shield US$10mln in June to help it with the launch of anaemia therapy Accrufer in the US.
It then immediately converted £7.75mln of its loan into shares of Shield increasing its stake to 27.01% from 13.13% previously.
AOP now owns 69.5mln shares, a statement today confirmed, with an option to convert the rest of the loan into equity as well.
At the time, Shield said it had abandoned plans to raise US$30mln from an institutional debt facility because of the tough conditions for funding.
Collateral for the loan, which runs until the end of 2023, is the intellectual property rights associated with Accrufer.
Shield is already selling its anaemia treatment in Europe and elsewhere, where it is known as Ferracru.
Shares in Shield rose 26% to 11.5p.