Drugs discovery firm aiming to raise £1m through new share placing

Manchester-based drugs discovery firm, C4X Discovery Holdings is planning to raise £1m of new funding through a share placing, priced at 15p per share, it announced this morning.

Panmure Gordon will oversee an accelerated bookbuilding process this morning to determine demand for participation in the placing by potential placees.

Shares will not be available to the general public.

The bookbuild will open with immediate effect and is expected to close later today.

Details of the number of placing Shares and the approximate gross proceeds of the placing will be announced as soon as practicable after the closing of the bookbuild. The placing is not underwritten.

The company said today, as noted in its recent interim results, its focus throughout 2020 is to advance various of its exisiting programmes and to progress the ongoing commercial discussions across its portfolio.

The net proceeds of the placing will be used to further strengthen its balance sheet as partnering and strategic collaborations progress, and to support working capital during the progression of its pipeline portfolio.

The net proceeds of the placing are expected to provide the company with at least 12 months’ working capital.

The company’s assumptions with regards to its working capital assume that a material tax credit will be received both this year and in the first half of 2021, as has been the case in previous years.

Last month the company, headed by chief executive Dr Clive Dix, revealed that it had managed to reduce interim losses, despite, once again, achieving no revenues in the six months to January 31, 2020.

Pre-tax losses fell from £6.255m in 2019 to £4.899m.

During the year the business achieved a successful fundraise of £7.6m through the issue of new shares to both new and existing shareholders.