ValiRx Plc (AIM: VAL), a clinical stage biotechnology company, is pleased to announce it has conditionally raised £1.0 million of gross proceeds through the issue of 80,000,000 new ordinary shares at a price of 1.25 pence per share (“Placing Shares”). The funds will be used for advancing the clinical trial of VAL201 and for the preclinical progress of other programmes, previously announced. The funds were raised through the Company’s broker, Beaufort Securities Limited (“Beaufort”).
The Company currently only has the authority to issue and allot 47,000,000 shares for cash, consequently the placing will be done in 2 tranches. Tranche 1 of 47,000,000 ordinary shares will be done immediately, providing the Company with gross proceeds of £587,500. Application will be made to the London Stock Exchange for the 47,000,000 new ordinary shares to be admitted to trading on AIM. Admission of these shares is expected to occur on or around 14 December 2017.
The Second Tranche of 33,000,000, representing gross proceeds of £412,500 ordinary shares is conditional on shareholders authority, to be sought at a forthcoming General Meeting – to be convened shortly, a further notification will be made by the Company in due course.
The Placing Shares will, when issued, rank pari passu in all respects with the existing ordinary shares of the Company.
Following Admission of the first Tranche, the Company’s enlarged issued share capital will comprise 263,405,413 ordinary shares of 0.1p each with voting rights. The Company does not hold any shares in treasury. This figure of 263,405,413 may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA’s Disclosure and Transparency Rules.
The Company has agreed to grant Beaufort a warrant to subscribe for 10 per cent of the Placing Shares admitted to trading on AIM (i.e. up to 8,000,000 ordinary shares – depending on the admission of the Second Tranche) at an exercise price of 1.25 pence per share. The warrants may be exercised at any time in the period expiring on the third anniversary of the date of Admission of the Placing Shares.
The Company notes the recent rise in its share price and believes this to be a consequence of comments and analysis surrounding the Company’s developmental pipeline and confirms that further to the announcement released on 28 September 2017, the Company remains on track to disclose results from the VAL401 trial before the year end.
All information is provided on an as-is basis. Where we allow Bloggers to publish articles on our platform please note these are not our opinions or views and we have no affiliation with the companies mentioned