9th Oct 2020 11:56
(Alliance News) - Diurnal Group PLC on Friday said it has raised GBP8.0 million through the placing of 13.3 million shares at 60 pence each.
The issue price represents a 9.8% discount to the Thursday closing price of 66.50p. Shares in the pharmaceutical company were trading 3.8% lower at 64.00p each midday Friday in London, giving it a market capitalisation of GBP78.1 million.
Earlier on Friday, Diurnal announced a placing to raise up to GBP8.0 million gross as well as an open offer which gives qualifying shareholders the opportunity to subscribe for up to 3.3 million shares on the basis of two open offer shares for every 73 existing shares, raising a further 2.0 million.
The Cardiff-based company said net proceeds of GBP7.5 million raised through the placing will be used to progress the development of the its native oral testosterone formulation DITEST including completion of a Phase 1 multiple ascending dose study in the US as well as to progress its early-stage pipeline into proof-of-principle clinical studies.
Proceeds will also be used to fund commencement of Phase 3 preparation activities for congenital adrenal hyperplasia drug Chronocort in the US and preparation for paediatric adrenal insufficiency drug Alkindi and Chronocort in Japan.
Following the completion of the raise, Diurnal expects its share capital to comprise 138.7 million shares.
Looking ahead, the company said taking into account its existing cash resources and marketing approval for Alkindi in both Europe and the US, based on the directors' current assumptions - including a successful marketing authorisation for Chronocort in the first quarter of 2021 and subsequent launch of Chronocort - Diurnal is funded to profitability for its late-stage cortisol replacement franchise.
By Ife Taiwo; [email protected]
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