26th Jun 2019 10:14
(Alliance News) - Immupharma PLC on Wednesday announced a 26.6 million share subscription to raise around GBP2.7 million at a price of 10 pence per share.
The drug discovery and development firm has entered a subscription agreement and sharing agreement with institutional investor Lanstead Capital Investors LP, raising the GBP2.7 million.
The 26.6 million shares represent around 19% of Immupharma's existing share capital and the 10 pence share price was a 27% discount to the company's closing price on Tuesday.
On Wednesday morning, Immupharma shares were down 17% at 11.32 pence.
The subscription proceeds are to be pledged by Immupharma under a sharing agreement with Lanstead. The agreement entitles Immupharma to receive back the proceeds on a monthly basis for 24 months once the shares are admitted to AIM.
Immupharma has also agreed to issue 1.3 million shares to Lanstead "in connection with entering into the sharing agreement". Stanford Capital Partners was coordinator and broker.
Proceeds from the subscription will help fund Immupharma's corporate strategy, including the progression of lupus drug Lupuzor and spin-off of subsidiaries Ureka and ELRO.
"We are delighted to be welcoming back Lanstead as a significant shareholder of the company. Lanstead has been very supportive of the company since their first investment in 2016 and this latest subscription demonstrates their continued support and the alignment of both the company and Lanstead's belief of the potential of substantial value enhancement for shareholders in the future execution of the company's recently stated corporate strategy," said Immupharma Chair Tim McCarthy.
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