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Faron Pharma plans to raise up to £2.8mln to fund cancer drug development

The group plans a subscription and open offer of new stock

Faron Pharmaceuticals Ltd -
The cash injection will allow Faron to complete a phase I trial of Clevegen

Faron Pharma Oy (LON:FARN) has unveiled plans to raise up to £2.8mln to complete an early clinical study on its promising cancer drug.

It has organised a share subscription at £1.06 a share to raise £1mln, ‘cornerstoned’ by major investor Timo Syrjälä, who has pledged £540,000.

His holding will rise to 14.2% following the subscription.

The company also plans an open offer of stock to existing backers of the group.

They will receive two shares for every 45 they currently hold if they opt to take part in the new issue.

The cash injection will allow Faron to complete a phase I trial to determine the maximum tolerated dose of Clevegen for part II of the clinical assessment. The plan is also to expand the colorectal group.   

Additionally, the new money will provide a cushion of working capital while the company seeks a partner for the drug.

Faron is also hoping to carry out commercialisation work for Traumakine, its drug for acute respiratory distress and, depending on the outcome of the open offer, perhaps an early US study of Clevegen.

Quick facts: Faron Pharmaceuticals Ltd

Price: 175.05 GBX

AIM:FARN
Market: AIM
Market Cap: £75.78 m
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Markku Jalkanen, chief executive at Faron Pharmaceuticals Oy (LON:FARN), caught up with Proactive following their £15mln funding aimed at accelerating the development of its two lead products. Jalkanen says the funds will allow them to prepare the way to market for Traumakine, a treatment...

on 21/2/18

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