Drug researcher raises £10m in share placing

DRUG discovery and development company Redx Pharma has raised £10m in a placing of new ordinary shares with both new institutional investors and existing shareholders.

The placing of 28,571,429 new ordinary shares was at a price of 35p per ordinary share, representing a discount of about 4.3%.

Cantor Fitzgerald Europe and WG Parnters acted as joint bookrunners in connection with the placing.

The major part of the net proceeds of £9.37m of the placing will be used to advance the Liverpool and Alderley Park company’s Porcupine programme towards first-in-human clinical trials, expected in the first quarter of 2017, and further develop Redx’s other assets in immuno-oncology, infection and immunology. In addition, the net proceeds will strengthen the company’s balance sheet.

Redx chief executive Neil Murray said: “”We are delighted to have successfully raised these new funds with approximately half coming from new institutional investors and also with very strong support from our existing shareholders.  

“We have made excellent progress in the last 12 months especially with our drug discovery programs, having achieved in-vivo proof of concept in a further three programs and selecting four drug candidates for progression into development.

“These new funds will support Redx’s continuing progress and our existing pipeline. We believe that the assets in our pipeline look extremely promising and offer the potential to deliver significant shareholder value.”

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