Pharmaceuticals firm announces £7.7m fundraise
Leeds-based pharmaceutical company 4D pharma says it intends to raise £7.7m.
It has proposed a placing through the issue of 21,898,400 new ordinary shares, at a price of 35 pence per share with new and existing investors.
The company intends to use proceeds from the fundraising, together with its existing resources, to progress opportunities in ongoing studies and clinical development.
This will include building upon a recently announced proof of concept data in the treatment of certain cancers with a Live Biotherapeutic, generating data in the firm’s Covid-19 clinical trial and advancing its novel therapeutic strategy for neurodegenerative disease.
4D pharma will also use the money to strengthen its balance sheet so it can explore longer-term strategies; and for working capital to allow it to investigate other capital market opportunities – including options for a potential US listing.
Duncan Peyton, chief executive officer of 4D pharma, said: “In 2020, 4D pharma has announced multiple key developments which reinforce the company’s approach to the development of single strain Live Biotherapeutics.
“These have included the delivery of what we believe to be the first ever clinical signals of efficacy in the treatment of cancer using LBPs, as well as securing expedited approval to conduct a clinical trial in COVID-19.
“In this period of economic uncertainty, 4D is pleased to announce this injection of capital into the company which is indicative of the continuing strong support of existing and new investors.
“This funding will enable us to ensure we have the best opportunity to build upon the exciting developments announced to date this year.”
The placing is being conducted by N+1 Singer and Bryan Garnier, acting as Joint Brokers.
Some directors of 4D pharma have indicated their intention to participate in the fundraising by subscribing for, in aggregate, approximately £510,500 for, in aggregate, 1,458,570 new ordinary shares.
