Listed pharmaceutical firm aims to raise more than £17m

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Leeds-based pharmaceutical business, 4D pharma, has today announced it intends to conduct a private placement to raise more than £17m.

It has entered into Securities Purchase Agreements with a select group of US and UK institutional investors and accredited investors to raise, in aggregate, $24.03m/£17.29m in a private placement of new ordinary shares of £0.0025 each at $1.53/£1.10 per share.

In addition, Duncan Peyton, chief executive officer, and Alex Stevenson, chief scientific officer, intend to subscribe for, in aggregate, $2m/£1.44m once the company has released the results for the year ended 31 December 2020, expected to be on or around 25 March 2021.

As reported last October, 4D pharma is to seek a NASDAQ listing after agreeing a deal with an American investor that gives it access to $14.6m/£11.1m.

The company is to merge with Longevity Acquisition Corporation, which is a special purpose acquisition company, in a deal which values the business at £140m.

Peyton explained: “This fundraising involves a broad range of institutional investors, strengthening our international investor base.

“Combined with the imminent merger and listing on NASDAQ expected to occur on 22 March 2021, 4D pharma is in a strong position to continue the development of the company and its pipeline of Live Biotherapeutics.

“The additional funds that these combined activities deliver will enable 4D pharma to continue the rapid pace of development on our pipeline of Live Biotherapeutics, including lead oncology program, MRx0518 targeting a range of cancers, as well as other therapeutic areas such as neurological conditions.

“We have a robust line up of milestones set for 2021 and with both our new US institutional support and upcoming NASDAQ listing, we look forward to providing updates from our novel, single-strain LBP programs to our expanded global audience.”

The fundraising is conditional on, among other things, passing of the resolutions by 4D shareholders at a General Meeting convened for 10am on 18 March 2021, and completion of the merger with Longevity Acquisition Corporation.

The Board expects the resulting proceeds of the fundraising will extend 4D’s cash runway into the second quarter of 2022.

Founded in February 2014, 4D pharma develops Live Biotherapeutics, a novel and emerging class of drugs.

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