ValiRx PLC shares fell 47% after a placing, subscription and WRAP retail offer were proposed to raise up to £1.05 million, to continue development activities in novel therapies in oncology and female health.
A firm placing and subscription, conducted by SP Angel and Shard Capital, will raise £750,000 at a discounted price of 0.25p per share, compared to yesterday's close price of 0.48p.
Investors will also receive one fundraising warrant for each new share, exercisable at 0.5p for three years.
Directors and persons closely associated with them have subscribed for a total of £100,000 of shares.
The retail offer, open until 3 November, could add a further £300,000.
Chairman Martin Gouldstone said: “I am pleased to see the company successfully close this round during a difficult funding environment. This will enable us to continue to develop important novel therapies in oncology and female health to ultimately benefit patients.”
Chief executive Mark Eccleston added that the funds will support the expansion of ValiRx’s evaluation pipeline and further development of special purpose vehicles Cytolytix, Blue Ribbon, and the 3K screen programme through Inaphaea.
The fundraising remains subject to shareholder approval at a general meeting to be convened shortly. Following admission of the first tranche of shares, ValiRx will have an enlarged share capital of 486.65 million ordinary shares.