ImmuPharma (LSE:IMM) has raised £6.5 million, before expenses, via an oversubscribed placing of 59,090,909 new ordinary shares at a price of 11p per share.
The specialist drug discovery and development company said the proceeds will be used to progress its therapeutic pipeline including one of its new developments, BioAMP-B.
BioAMP-B is a novel peptide-based drug that offers a potential treatment for many serious and life-threatening fungal infections such as aspergillosis (lung infection).
ImmuPharma said the funds will also provide the Company with additional working capital. The Placing was undertaken by joint brokers, Stanford Capital Partners and SI Capital.
Shares in ImmuPharma have seen a steady increase over the past two weeks and opened at 13p following the placing announcement.
Taking into account existing cash resources and the expected net proceeds, the Company said it expects to have sufficient cash resources to fund operations through the end of 2023.
“With a strong balance sheet, a diverse and exciting therapeutic pipeline and our lead drug candidate, Lupuzor™ moving forward into an international Phase III trial, ImmuPharma is in an extremely robust position,” said Tim McCarthy, ImmuPharma's Chairman.
He added, “With value-enhancing news-flow over the next period, we are confident of creating long term shareholder value for all of our shareholders.”
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