11th Jun 2020 13:53
(Alliance News) - Immupharma PLC on Thursday said it has entered into agreements with two specialist US healthcare investors for a total investment of up to USD6.30 million, comprising an issue of unsecured convertible securities and associated options.
Under the agreement, the drug development company said it will issue USD3 million of securities to two US specialist healthcare investors, L1 Capital Global Opportunities Master Fund and Lind Global Macro Fund LP, with a maturity period of 18 months.
Immupharma said, at any time during the maturity period, the investors may convert their securities - in whole or in part - to 13.1 million shares in the company, in aggregate, at a price of 17.96p.
The AIM stock was trading 2.4% higher in London on Thursday at 15.20p a share, giving Immupharma a market capitalisation of GBP27.8 million.
Should any securities remain unconverted on December 10, 2021, Immepharma said it will repurchase the outstanding face value of the unconverted securities.
The net proceeds from the investments will be used primarily to fund continued expansion of the company's research & development programmes and for general working capital.
In addition, Immupharma said the investors have been granted 15.7 million options in the company, which may be exercised at any time up to three years, with an exercise price the same as the conversion price.
"It particularly exemplifies the strengthened investment thesis of ImmuPharma, as we continue to strengthen and progress our recently expanded development pipeline to value inflexion points," said Chair Tim McCarthy.
By Evelina Grecenko; [email protected]
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